Policy and financial dual empowerment: Warmth spreading in the Beijing, Shanghai, and Shenzhen real estate markets

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The above images were all taken by Li Bingxiong at a sales office in Beijing.

Reporter Li Bingxiong

Spring tide surges, warmth gradually spreads.

First-tier real estate market

As a “warm current” surges, the market stabilization trend is becoming increasingly clear. Closely aligned with the strategic direction of “promoting high-quality development of real estate” in the 14th Five-Year Plan, and anchoring on the 2026 government work report’s deployment of “focusing on stabilizing the real estate market,” policy guidance and financial practices are both exerting efforts, continuously activating the first-tier market and promoting a virtuous cycle in the real estate industry.

On February 25, 2026, the Shanghai Municipal Housing and Urban-Rural Development Management Committee and four other departments issued the “Notice on Further Optimizing and Adjusting the City’s Real Estate Policies” (hereinafter referred to as the “Notice”). As of March 25, this new policy has been implemented for a full month. Data from the Shanghai Lianjia Research Institute shows that from March 1 to March 23, 2026, 22,400 second-hand homes were sold in Shanghai, an increase of 11% compared to the same period in 2025. Not only Shanghai, but also Beijing, Shanghai, and Shenzhen have simultaneously lowered personal housing loan interest rates and down payment ratios, with city-specific policies fully implemented, and relevant policies have entered a stable observation period.

The Securities Daily reporter specially traveled to Beijing, Shanghai, and Shenzhen for on-site research, engaging in face-to-face dialogues with financial institution practitioners, real estate agents, homebuyers, and sellers, comprehensively assessing the real situation of the first-tier market. Based on the comprehensive research findings, the core areas of the real estate market in the three cities have shown a stabilization trend, with the demand for home purchases driven by necessity and upgrades becoming the core driving force of current market transactions.

Policy and finance working together

Effectively lowering housing costs

Within the macro policy framework, Beijing, Shanghai, and Shenzhen have all launched localized loosening policies for the real estate market, from relaxing purchase restrictions and optimizing commercial loan policies to increasing housing provident fund support, precisely supporting residents’ reasonable housing needs and forming a policy synergy.

The aforementioned “Notice” indicates that policies related to housing purchase restrictions, provident fund loans, and personal housing property taxes are being optimized and adjusted in seven aspects. On this basis, the commercial property loan policies have been further optimized. Starting from March 16, the minimum down payment ratio for purchasing commercial properties (including “commercial residential properties”) in Shanghai has been adjusted to no less than 30%.

Li Gen, head of the Shanghai Lianjia Research Institute, stated in an interview with the Securities Daily reporter: “Currently, the daily average viewing volume at Shanghai Lianjia has increased by 30% compared to before the new real estate policy, and the daily average number of new clients has increased by 51% compared to before the policy, with client confidence in entering the market significantly improved, and both viewings and transactions are very active.”

Beijing has released two notifications to further optimize and adjust real estate-related policies in 2025. On August 8, 2025, the policy relaxed purchase restrictions outside the Fifth Ring Road, allowing unlimited purchases of commodity housing (including newly built and second-hand housing) outside the Fifth Ring Road; on December 24, 2025, the Beijing Municipal Housing and Urban-Rural Development Committee and other departments released new real estate policies again, adjusting the years of social insurance or personal income tax payments required for non-local residents’ families to purchase housing within and outside the Fifth Ring Road, and no longer distinguishing between first and second homes in the interest rate pricing mechanism arrangements.

According to several major state-owned banks, the current commercial mortgage rates in Beijing are based on the 5-year LPR (3.50%), with many banks’ actual execution rates generally around 3.05%. Calculations show that for purchasing a second home within the Fifth Ring Road, with a loan of 1 million over a 30-year period using equal principal repayment, compared to the previous rate of 3.45% before December 24, 2025, the monthly payment can be reduced by more than 100 yuan, saving tens of thousands in total repayments.

Shenzhen has implemented optimized adjustments to real estate policy measures since September 6, 2025, including optimizing and adjusting personal housing credit policies. Among them, commercial loan interest rates no longer differentiate between first and second homes.

“Since last year, first-tier cities have frequently introduced measures to lower down payment ratios, reduce loan interest rates, and optimize purchase and loan restrictions, effectively lowering the threshold for residents to buy homes, forming a strong financial support combination that has boosted market sentiment on the margin,” said Cao Jingjing, general manager of the Index Research Department at the China Index Academy, to the Securities Daily reporter. The reasons include the effective results of new policies leading to the release of potential homebuyer demand; on the other hand, prices in premium segments of core cities have gradually approached reasonable levels. The current market shows obvious structural differentiation characteristics, with high trading activity in quality projects in core urban areas, while inventory pressure still exists in suburban areas.

A series of policy combinations, coupled with financial empowerment, have continuously increased transaction activity in the first-tier cities’ real estate markets. On March 16, the National Bureau of Statistics released the February sales price changes of commercial residential properties in 70 large and medium-sized cities, indicating that the month-on-month decline in sales prices continued to narrow.

Data from the National Bureau of Statistics shows that in February, the sales prices of newly built commercial residential properties in first-tier cities remained stable, recovering from a month-on-month decline of 0.3%. Among them, Beijing and Shanghai both increased by 0.2%, Guangzhou remained stable, and Shenzhen decreased by 0.3%; the month-on-month sales prices of second-hand residential properties in first-tier cities decreased by 0.1%, a decrease of 0.4 percentage points compared to the previous month, with Beijing and Shanghai increasing by 0.3% and 0.2%, respectively.

“From the objective data, the first-tier cities’ real estate market has shown positive performance, especially with the adjustment of housing prices and the release of policy effects, which have played a very good comprehensive effect,” said Yan Yuejin, vice president of the Shanghai E-House Real Estate Research Institute, to the Securities Daily reporter. In terms of the Shanghai real estate market, this round of market transactions is not driven by a single factor, but rather the result of multiple favorable factors acting in combination: first, the continuous release of policy dividends and precise financial empowerment inject strong momentum into the market; second, price adjustments are in place, and confidence is gradually restored; third, potential demand is objectively present.

Agents are “getting busy”

Witnessing the warmth of the first-tier real estate market

	“The sunflower grows easily in spring,” first-tier real estate agents are most sensitive to the warmth of the real estate market. With the empowerment of new policies, the trading activity in the real estate markets of Beijing, Shanghai, and Shenzhen has significantly increased.

	“I had three eggs for breakfast and was busy until after 8 p.m.” Beijing new home salesperson Li Kai (pseudonym) vividly illustrates the market heat after the new policy implementation. He admitted that he completed seven contracts in just one Saturday, even needing to pre-order lunch. Li Kai's situation is not an isolated case but a common phenomenon among real estate agents in Beijing, Shanghai, and Shenzhen.

	As night falls, a real estate agency in Xicheng District, Beijing, remains brightly lit, with three signing rooms fully occupied. The walls are adorned with banners sent by homeowners and buyers, and the printing area continuously produces housing transaction contracts, exuding a busy atmosphere. Beijing second-hand housing agent Zhang Li (pseudonym) reported that consultation and viewing calls have been incessant. She told the reporter that there has been a significant increase in recent customer requests for viewings, homeowner listings, and policy consultations, with frequent transaction success reports within the agency. On March 14 alone, the regional transaction volume exceeded 170 contracts, with four districts completing more than five contracts and nine districts completing four contracts.

	Thousands of miles away in Shanghai, real estate agents are just as busy. Agent Chen Jun (pseudonym) is still responding to clients' viewing inquiries even at 9 p.m. He stated that since the beginning of the year, the market pace has noticeably accelerated, with continuous increases in inquiries and viewings. On the day the “Notice” was implemented, industry peers quickly organized interpretations and promotions, leading to a further rise in client inquiries, particularly in the high-value properties within the inner ring.

	A real estate trading platform's agent provided data to the Securities Daily reporter, showing that on March 14 alone, the second-hand housing transaction volume in Shanghai exceeded 1,400 units.

	Behind this busyness is the proactive transformation of the agency industry. The reporter found that many real estate agency offices have strengthened policy training to ensure agents grasp the latest policies accurately and are familiar with key details such as down payment ratios and mortgage rate adjustments. The busy figures of real estate agents have become the most intuitive vivid note of the current market recovery.

	Transactions on both sides have their considerations

	Facilitating healthy development of the industry chain

	The core benefits of the new real estate policy not only benefit homebuyers but also deeply impact the entire real estate ecosystem, injecting strong momentum into the industry's virtuous cycle. On the policy side, precise measures and city-specific efforts are building a stable foundation, and on the financial side, precise empowerment and proactive actions are forming a synergy, driving the industry steadily toward high-quality development, achieving a positive loop in the real estate ecosystem.

	First-time homebuyers feel that there are more “affordable” houses available. Li Hui, who works in Beijing, started looking at houses in early 2025 but hesitated due to budget constraints. Originally only able to afford a one-bedroom, with the new policy in place, he can now afford a small two-bedroom and is preparing to make a purchase soon.

	Liu Hong, a worker living in the Minhang District of Shanghai, also admitted that discussions about housing have increased among non-local colleagues and friends around him. “Now with favorable policies, some friends are also slowly observing for suitable housing options.”

	Improvement-seeking groups are optimizing their living conditions with the help of policy winds. The release of replacement demands has not only activated existing housing inventory but also enhanced market liquidity, facilitating a healthy cycle of “selling old and buying new” in the real estate market. Wang Zongxu from Shenzhen plans to purchase a second-hand home, stating: “I am still observing for now, primarily due to improvement needs, wanting to replace my home with one in a core area, which I consider a sound asset allocation.”

	Corresponding with the active entry of homebuyers into the market, sellers' attitudes are also subtly changing under the influence of the new policy. Sellers with replacement needs have become proactive responders to the new policy, actively listing their properties and offering moderate discounts, hoping to sell quickly to complete their replacements; some sellers are listing only to realize cash, enriching the market supply levels.

	The Securities Daily reporter once accompanied homebuyer Zhang Jun in negotiating for a desired second-hand home. The listing price for the property was 5.28 million yuan, and before negotiations, the agent mentioned that based on the owner's previous psychological price, the transaction price was expected to drop below 5 million yuan. However, during the negotiation process, the owner's attitude changed significantly, showing a “reluctance to sell” mentality, clearly stating that the property would not be sold for less than 5 million yuan. This negotiation lasted less than an hour and did not result in a transaction. However, the reluctance of some individual owners to sell reflects that market confidence is gradually being restored.

	Zhang Li told the reporter that while the transaction volume in her area has indeed increased, housing prices have not seen a broad increase, with only some premium properties in core areas showing slight price increases.

	Overall, after the new policy's implementation, the activity level in the real estate markets of Beijing, Shanghai, and Shenzhen continues to rise. Whether it’s for replacement, liquidation, or observation, market participants are searching for optimal solutions based on their own needs. This diversified market behavior together constitutes a healthy and orderly real estate ecosystem, while the increase in activity and the rational return of transactions further solidify the stabilization trend in the real estate market.

	In Cao Jingjing's view, this round of policy optimization displays characteristics of “city-specific policies and precise empowerment,” effectively lowering the homebuying threshold through a gradient loosening of purchasing qualifications and lowering financing costs.

	More importantly, as a crucial support for stabilizing and recovering the entire real estate market, the stabilization and recovery of the first-tier real estate market will continuously release positive signals to the market, helping to reinforce the foundation of the entire real estate market.

	“The current stabilization of the first-tier real estate market has already positively impacted the upstream and downstream of the industry chain. Taking second-hand housing in Shanghai as an example, the continuous activity in core area transactions is directly driving rapid growth in subsequent consumer businesses such as home decoration, furniture, and appliances,” Yan Yuejin stated. When the real estate market improves, and corporate financial conditions improve, coupled with rising demands for high-quality living, it will also bring more market demand to emerging fields like AI and robotics.

	Du Juan, a senior researcher at Suzhou Bank Research Institute, stated: “The real estate industry chain is long, covering everything from construction materials to home decoration and appliances, spanning multiple categories. The stabilization of the real estate market is not only a warming of market transactions but also a recovery of the entire industry chain and a boost to consumption. This multidimensional positive feedback continuously improves the real estate ecosystem, forming a virtuous cycle of 'market stabilization, industry chain recovery, consumption upgrading, and ecological optimization.'”

	For homebuyers, Du Juan suggests that the primary focus should be on meeting housing needs; secondly, consider purchasing power, with the key being to act within one’s means and enhance awareness of rights protection; thirdly, pay attention to additional expenses, requiring comprehensive financial planning; fourthly, stay updated on new policies to seek relevant support.

	With policies and finance working in tandem, not only has the threshold for residents to purchase homes been effectively lowered, but it has also played an important role in alleviating liquidity pressure on real estate companies and driving the recovery of the upstream and downstream of the real estate industry chain, injecting lasting momentum for achieving a virtuous cycle and high-quality development of the real estate ecosystem.

		
		
		

		

		
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Editor: Gao Jia