Shanghai commercial properties' minimum down payment ratio reduced to 30%

Securities Times Reporter Wu Jiaming

On March 16, according to the official website of the Shanghai headquarters of the People’s Bank of China, the Shanghai Branch of the People’s Bank of China, in conjunction with the Shanghai Regulatory Bureau of the National Financial Supervision Administration, issued the “Notice on Adjusting the Minimum Down Payment Ratio Policy for Commercial Property Purchases in Shanghai.” The following adjustments have been made to the commercial property mortgage policy in Shanghai: 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%. Banking financial institutions within the jurisdiction should determine the specific down payment ratio for each loan reasonably, based on the lower limit requirements of the notice, combined with their operational conditions and customer risk profiles.

Generally, commercial properties refer to real estate used specifically for commercial activities, including shops, apartments, office buildings, shopping malls, hotels, and other types of real estate products. Among these, commercial apartments are particularly popular. Previously, the minimum down payment ratio for commercial property loans in China was usually 50%, with some projects requiring even higher down payments. In January this year, the People’s Bank of China and the National Financial Supervision Administration jointly issued a notice to lower the minimum down payment ratio for commercial property loans to no less than 30%.

Previously, several cities, including Shenzhen, have adjusted their commercial property mortgage policies, lowering the minimum down payment ratio to no less than 30%.

Centaline Research Institute believes that, in recent years, the oversupply in the commercial office market has become a industry consensus. Against this backdrop, multiple cities have introduced supportive policies to promote commercial office projects into operational channels, including allowing existing commercial office projects to be converted into rental housing and supporting building compatibility. Some analysts suggest that optimizing the allocation of commercial real estate resources and lowering the down payment ratio can guide resources toward more efficient sectors and projects. Commercial real estate projects with poor locations or operations may attract new investors or operators due to policy incentives, and through re-planning, renovation, and operation, resources can be better allocated, improving the overall utilization efficiency of commercial real estate.