Shanghai Implements Follow-up Adjustments to Commercial Property Purchase Loan Policies

On March 16, the People’s Bank of China Shanghai Branch, in conjunction with the Shanghai Regulatory Bureau of the China Financial Supervision and Administration, issued the “Notice on Adjusting the Minimum Down Payment Ratio for Commercial Property Loans in Shanghai” (hereinafter referred to as the “Notice”), which makes adjustments to the commercial property loan policies in Shanghai.

The “Notice” clarifies that starting from March 16, 2026, the minimum down payment ratio for commercial properties (including “mixed-use residential and commercial” properties) in Shanghai will be adjusted to no less than 30%.

In January of this year, the “Notice on Adjusting the Minimum Down Payment Ratio for Commercial Property Loans” issued by the People’s Bank of China and the China Financial Supervision and Administration explicitly stated that the minimum down payment ratio for commercial properties (including “mixed-use residential and commercial” properties) would be adjusted to no less than 30%. The current “Notice” implements this policy.

Currently, this policy has been implemented in several regions. For example, the People’s Bank of China Shenzhen Branch clarified on January 23 that the minimum down payment ratio for commercial properties (including “mixed-use residential and commercial” properties) in Shenzhen has been adjusted to no less than 30%.

Since the beginning of this year, regions such as Heilongjiang, Sichuan, and Shandong have issued notices to lower the minimum down payment ratio for commercial property loans.

“The background for adjusting the minimum down payment ratio for commercial property loans is that many regions are facing high inventory levels of commercial properties for sale and long liquidation cycles. Lowering the minimum down payment ratio to 30% helps stimulate demand for commercial property purchases, thereby revitalizing the secondary market and existing inventory,” said Li Yujia, Chief Researcher at the Guangdong Housing Policy Research Center.

Yan Yuejin, Deputy Director of the E-House Research Institute in Shanghai, stated that previously, the minimum down payment ratio for commercial property loans was 50%. Reducing the down payment ratio not only promotes inventory clearance and revitalizes existing stock in the commercial office market but also supports the development of commercial retail and industrial sectors by increasing liquidity and activating the industrial functions of commercial and office properties.

Currently, there are positive signs in the commercial property inventory situation. Data released by the National Bureau of Statistics on March 16 show that as of the end of February 2026, the area of commercial and business properties for sale was 137.6 million square meters, a decrease of 5.3% year-on-year.

Yan Yuejin noted that in Shanghai, office buildings and commercial projects in core areas are likely to be more favored. Especially with recent strong activity in second-hand property transactions, this will help boost market enthusiasm.