Shanghai’s “Seven Measures” Real Estate Policy: What You Need to Know About Housing Purchase Restrictions in 2026

In a significant move to stabilize its real estate market and address housing demand, Shanghai just rolled out a major policy overhaul.

On February 25, 2026, five municipal departments—including the Shanghai Municipal Commission of Housing and Urban-Rural Development (Shanghai Shi Zhufang He Chengxiang Jianshe Guanli Weiyuanhui 上海市住房和城乡建设管理委员会), the Shanghai Municipal Housing Administration (Shanghai Shi Fangwu Guanliju 上海市房屋管理局), the Municipal Finance Bureau, the Municipal Taxation Bureau, and the Municipal Provident Fund Management Center—jointly released the “Notice on Further Optimizing and Adjusting the City’s Real Estate Policies.”

The policy kicked into effect on February 26, 2026.

Here’s what makes this important for investors, founders, and anyone watching Chinese real estate trends: this is a direct response to easing housing purchase restrictions while trying to keep the market balanced.

Let’s break down what actually changed.

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Housing Purchase Restrictions Just Got Way More Flexible

The biggest headline here is that Shanghai is making it easier for non-residents to buy property in the city.

This is a livability play—Shanghai’s trying to attract talent and support people who want to live closer to where they work.

Three Major Changes to Purchase Restrictions

1. Social Security Requirements Dropped to Just 1 Year

Non-local resident families or single adults buying property within the Outer Ring Road (Wai Huan 外环) now only need to prove 1 year or more of continuous social security or personal income tax payments.

Previously, this threshold was higher.

The takeaway?

Non-residents can enter the market much faster than before.

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2. Non-Residents Can Now Buy a Second Unit (With 3 Years of Payments)

Non-local residents who’ve paid social security or income tax in Shanghai for 3 years or more can now purchase an additional housing unit within the Outer Ring Road.

This is new.

Before, the restrictions were tighter for second purchases.

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3. Shanghai Residence Permit Holders Get Simplified Access

Non-local residents holding a “Shanghai Residence Permit” (Shanghai Shi Juzhuzheng 上海市居住证) for 5 years or more can now purchase one housing unit city-wide without even proving social security or income tax payments.

This is the biggest unlock—no tax/insurance documentation required.

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Here’s the New Purchase Limit Framework

To keep things straight, here’s exactly how many units different categories of non-residents can now buy:

• 1 year of continuous local social security or tax payments: Unlimited units outside the Outer Ring; limited to 1 unit inside the Outer Ring.
• 3 years of continuous payments: Limited to 2 units inside the Outer Ring.
• Shanghai Residence Permit holders (5+ years): Limited to 1 unit city-wide.

For questions about housing purchase restrictions, residents can call the real estate trading industry service hotline at 962269.

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Housing Provident Fund Loans Just Got a Serious Upgrade

The second pillar of this policy targets the Housing Provident Fund (Zhongguo Zhufang Gongjijin 中国住房公积金)—essentially China’s mandatory savings program for housing.

Shanghai just made it significantly more useful.

Maximum Loan Amounts Are Now Way Higher

This is where things get interesting for first-time home buyers:

• Maximum provident fund loan for first-home purchase: ¥1.6 million RMB ($222,400 USD) → ¥2.4 million RMB ($333,600 USD)

That’s a 50% increase.

But it gets better.

For multi-child families or buyers of green buildings, there’s an additional upward adjustment of up to 35%.

This means the absolute maximum family loan can now reach ¥3.24 million RMB ($450,360 USD).

Second-home loan amounts have also been bumped up—though the details on those increases weren’t specified in the announcement.

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New Eligibility Rules for Repeat Borrowers

Here’s something that opens up opportunities:

Local depositors who previously took out a provident fund loan but currently own no housing (or just one unit) and have fully repaid their previous loan can now apply for a new provident fund loan when purchasing another home.

This removes a barrier that existed before.

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Multi-Child Families Get Extra Support

Shanghai’s expanding support for families with multiple children—a clear nod to the government’s push for higher birth rates.

The provident fund support policy for multi-child families has been expanded from first homes only to include second homes.

When multi-child families purchase a second home, the maximum loan amount increases by 20% on top of the standard city maximum.

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Personal Housing Property Tax Just Got More Favorable

This is the third major pillar—and it’s designed to support homeowners upgrading to better properties.

Tax Exemptions for Adult Children Buying Their First Home

Starting January 1, 2026, adult children of local resident families purchasing a home that will be their only family residence are now temporarily exempt from personal housing property tax.

Here’s the critical part: this applies even if the buyer previously shared ownership of a home with parents or grandparents—whether acquired while they were a minor or before the property tax pilot program started.

The only condition?

The new or replacement home must be the adult child’s only family residence.

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Retroactive Adjustments and Refunds Available

If a family’s housing situation changes and meets these criteria, they can re-file a personal housing property tax declaration with tax authorities.

Tax adjustments will be retroactive to the month following reassessment.

Any overpaid taxes for periods after January 1, 2026, will be refunded.

This means people who already paid taxes under the old rules might get money back.

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Why This Matters: The Bigger Picture

Shanghai’s framing this entire package as part of the government’s commitment to stabilizing the market, expectations, and confidence—language straight from the Central Economic Work Conference.

The city is trying to do something delicate:

Stimulate demand-side housing demand through easier purchase restrictions and cheaper financing.

While simultaneously optimizing supply-side policies through second-hand housing acquisition for rental properties.

It’s not just about letting more people buy—it’s about keeping the entire real estate ecosystem stable.

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Key Takeaways for Investors and Observers

• Easier market entry: Non-residents now have a much faster path to buying Shanghai property.
• Bigger loans: First-time buyers can borrow significantly more through the provident fund system.
• Tax relief: Generational wealth transfer and home upgrades just became more attractive.
• Policy signal: Shanghai’s clearly focused on supporting housing consumption as an economic driver.
• Flexibility for families: Multi-child families are getting concrete financial incentives—aligning policy with demographic goals.

Whether you’re an investor watching China’s real estate landscape, a founder building housing-related services, or simply tracking policy trends, this Shanghai move is worth monitoring.

The “Seven Measures” represent a significant easing of housing purchase restrictions while trying to maintain market stability.

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References

• Shanghai Unveils “Seven Measures” for Real Estate – Shangguan News (Shangguan Xinwen 上观新闻)
• Official Portal of the Shanghai Municipal People’s Government – Shanghai Government
• Policies and Regulations – Shanghai Municipal Commission of Housing and Urban-Rural Development