The central government unveiled the incentive package late last month, adding a longer mortgage cycle – from the previous 30‑year limit to 40 years – and offering policy nudges for buyers of finished homes, which are seen as safer against developer defaults.
Property brokers across China’s biggest cities say they have been “swamped” with calls from prospective buyers. Yang Keju, a Lianjia agent in Pudong, Shanghai, noted that the surge reflects a renewed confidence but warned that the heightened transaction volume could prove short‑lived without further support.
According to China Real Estate Business, a newspaper of the Ministry of Housing and Urban‑Rural Development, sales of new residential units rose sharply in the first week of the month in Shanghai, Shenzhen and Nanjing, marking the most pronounced uptick since the policy shift.
Nevertheless, industry analysts remain skeptical. Fitch Ratings warned that the mortgage easing is unlikely to offset the sector’s high inventory and lingering buyer wariness, projecting that demand will stay weak and that near‑term home prices will remain broadly stable nationwide.
Local agents also point to lingering structural constraints. You Liangzhou, owner of the Baonuo agency in Shanghai, said many clients are holding off, hoping for further price drops, and that existing purchase caps – such as the ban on a third home introduced in 2011 – still deter upgrades. He called for deeper deregulation to restore full consumer confidence.
In Shanghai, the municipal government has been gradually loosening ownership rules since October 2024, now allowing non‑registered residents to buy property. Beijing has similarly eased requirements for non‑local families seeking homes within the city’s Fifth Ring Road, cutting the required period of local tax or social‑security contributions from three years to one year as of mid‑2025.
Despite the policy push, brokers report that owners of occupied apartments are still offering discounts of 5‑10 % to secure sales, underscoring the continued pressure on the market.