"Beijing-Shanghai "Loosening Restrictions", How Will it Affect the Real Estate Market?"

In the just-concluded August, the most significant positive policy for the real estate market was the relaxation of purchase restrictions in the two major first-tier cities of Beijing and Shanghai. On August 8, Beijing issued a new policy on home purchases, clarifying that families meeting the purchasing conditions can buy an unlimited number of commercial housing units outside the Fifth Ring Road, while also optimizing the housing provident fund loan policy. On August 25, Shanghai issued a new policy allowing eligible resident families to purchase an unlimited number of housing units outside the Outer Ring Road, while single adults are subject to the same restrictions as resident families. In addition, adjustments were made to policies regarding housing provident fund loans, commercial loans, and property taxes. Against the backdrop of high-level emphasis on "taking strong measures to consolidate the real estate market and stabilize the declining trend," the significantly relaxed purchase restrictions in Beijing and Shanghai, known for their strict policies, have become the bellwethers of the new round of real estate policy adjustments. This policy signal is expected to boost confidence in the national real estate market and have a positive impact on the upcoming traditional peak season for property sales in September and October.