In a significant policy shift aimed at revitalizing its real estate sector, Shanghai has announced comprehensive reforms to its property purchasing regulations. The new measures, effective February 26, 2026, substantially reduce residency requirements for non-local homebuyers seeking properties within the city’s Outer Ring Road.
Under the revised framework, non-local families and individual buyers without Shanghai household registration (hukou) now qualify for residential purchases after just one year of tax payments in the municipality—a considerable reduction from previous requirements. Those maintaining three years of tax contributions gain eligibility for additional property acquisitions.
The policy package further eliminates income tax prerequisites for long-term residents, permitting families and single adults holding Shanghai residence permits for five or more years to purchase one housing unit regardless of income tax status.
Beyond residency adjustments, the seven-point initiative includes lowered thresholds for housing provident fund loan applications and modifications to property tax exemption criteria. These coordinated measures aim to address diverse housing needs while stimulating market activity.
Jointly issued by multiple municipal authorities including the Shanghai Municipal Commission of Housing and Urban-Rural Development and the Shanghai Municipal Tax Service, these reforms represent a strategic effort to balance housing supply with evolving demand patterns. The policy framework explicitly targets the promotion of stable, healthy real estate market development while accommodating legitimate residential requirements.