Shanghai launches new policies to make home-buying easier

Shanghai will further ease its property policy by allowing more people to buy a home in a shorter period of time and at a lower cost.

City authorities issued a notice on Sunday night, unveiling several new measures that will take effect on Tuesday.

One of them is that non-Shanghai residents intending to buy a home outside the city's Outer Ring Road will qualify if they have paid social security or personal income tax for at least one year. This compares with the previous standard of a minimum of three years.

Also, non-locals who have paid social security or personal income tax for at least three years are now eligible to purchase two housing units – the same as locals.

For people working in Lingang but living elsewhere, they can now buy another property in this special area of the city.

Shanghai will also carry out all national-level stimulus policies, including the reduction of loan interest rates for existing homes and a cut in down payment ratio. The threshold for down payment is lowered to 15 percent from 20 percent for first-time home buyers and 20 percent for second-time buyers, down from 30 percent previously.

Last but not the least, the city has adjusted the value-added tax exemption period from five years to two years for individuals who sell their housing to the public.