"Shanghai's Seven Policies" implementation day sees a significant increase in bank mortgage inquiries

Shanghai’s second-hand home transaction volume has remained above 20,000 units for three consecutive months. According to Centaline Property data, in January 2026, Shanghai’s second-hand residential transactions reached 20,300 units, a year-on-year increase of 26.69%.

The People’s Bank of China’s Shanghai headquarters disclosed that in January, household sector loans increased by over 33.3 billion yuan, including a short-term loan increase of 1.75 billion yuan and a medium- to long-term loan increase of 31.575 billion yuan. This reflects a warming in residents’ housing mortgage demand.

On the first day of the implementation of Shanghai’s new housing market policy “Seven Measures in Shanghai,” the real estate market responded swiftly, with a noticeable increase in bank mortgage consultation volume.

It is reported that the “Seven Measures in Shanghai” mainly include lowering the home purchase threshold, relaxing restrictions on the number of homes purchased, increasing the quota for public housing fund loans, and optimizing property tax policies. For example, the new policy clarifies that non-Shanghai residents who have paid social security for one year can buy a home, and holding a residence permit for five years also qualifies for home purchase.

Several frontline banking officials in Shanghai told Shanghai Securities Journal that mortgage consultation volume has significantly increased compared to before the policy, and some homebuyers have already started applying for loans.

“Almost all day I was receiving consultation calls, mainly about loan discounts, home purchase qualifications, and loan conditions,” a customer manager at a joint-stock bank’s Bund branch told Shanghai Securities Journal. He plans to proactively contact existing customers who are still observing the market before the end of work, explaining the key points of the new policy one by one, and strengthen communication with several key real estate agents.

A customer manager responsible for mortgage business at a state-owned bank also told Shanghai Securities Journal, “Consultation volume has increased significantly, and many clients are inquiring about the procedures for public housing fund loans and commercial loans combined loans.”

On the same day, reporters consulted multiple real estate agency stores, and several agents said that the potential homebuyer group has clearly expanded, with customers who were still observing at the end of last year becoming more active. The main groups seeking consultation include workers holding Shanghai residence permits but without social security, young people with social security but non-Shanghai hukou, etc.

“Currently, the consultation groups include both first-time homebuyers and families seeking to upgrade.” A real estate agent in Baoshan District, Shanghai, told reporters, “Many clients were worried about policy risks or housing price fluctuations before, but now with clear policy signals, their willingness to buy has strengthened.”

The secondary market has already seen some changes under the new policy. According to reports, on one hand, some landlords are speeding up listings to take advantage of the new policy; on the other hand, some landlords are raising prices or delaying sales. “Recently, for the properties I handle, some landlords relisted, some have been taken off the market, and two have increased prices,” said an agent in Baoshan District. “Many landlords have changed their mindset, believing that market expectations have improved and they can wait for a more suitable transaction timing.”

Recent transaction data for Shanghai’s second-hand homes shows that the market recovery continues, with transaction volume remaining above 20,000 units for three months in a row. Centaline data indicates that in January 2026, second-hand residential transactions in Shanghai reached 20,300 units, a 26.69% year-on-year increase. Daily online real estate signings on weekdays stay above 500 units, with over 1,000 units signed each day on weekends.

The transaction volume exceeding 20,000 units has driven an increase in bank mortgage loans. The People’s Bank of China’s Shanghai headquarters disclosed that in January, household sector loans increased by over 33.3 billion yuan, including a short-term loan increase of 1.75 billion yuan and a medium- to long-term loan increase of 31.575 billion yuan. Industry insiders believe that the growth of medium- and long-term household loans mainly reflects a recovery in residents’ housing mortgage demand.

Yan Yuejin, Deputy Director of E-House Research Institute in Shanghai, told Shanghai Securities Journal, “March is traditionally a key period for the ‘small spring’ in the housing market. The implementation and landing of this new policy will further promote the release of housing consumption demand and balance supply and demand while continuously reducing home purchase costs, thereby further consolidating the current stable and improving trend of the housing market.”

Source: Shanghai Securities News

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