Shanghahi yesterday slightly changed the rules for housing so that more first-time home buyers can enjoy preferential mortgage policies to boost the local property market.
The Shanghai government said in a statement that a flat in the city’s Inner Ring Road with a total price of less than RMB2.45 million ($358,293) will be defined as normal housing if its floor space is smaller than 140 square meters.
For a normal apartment sitting between the Inner Ring Road and the Outer Ring Road, the price cap will be RMB1.4 million while that outside the Outer Ring Road will have a price limit of RMB980,000.
All so-called normal apartments should be smaller than 140 square meters.
First-time buyers of normal apartments will have their minimum downpayment cut to 20% from 30% and the floor mortgage rates will be lowered to 70% of the central bank’s benchmark rate, down from 85%.