Shanghai on Aug 25 rolled out a series of measures to further stimulate the property sector, including the removal of purchase restrictions on suburban homes.

The measures come into effect on Aug 26, according to a circular published by six local departments, including the Shanghai housing and urban-rural development commission.

Purchase policy adjustments

• Families with local household registration will no longer face limits on the number of homes they can purchase outside the outer ring road.
• The same applies to families without local registration, provided they have at least one year of social insurance or individual income tax payment records in the city.
• Single adults will enjoy the same treatment as families.

Stronger housing provident fund support

• Buyers of new green housing will be eligible for up to 15 percent more in housing provident fund loans.
• For first-home purchases, the loan ceiling has been raised to 1.84 million yuan (about $258,600). For families with multiple children, the cap rises to 2.16 million yuan.
• Homebuyers may use both their own and their spouse's housing provident fund savings for down payments on new pre-sale commercial housing.
• Banks will no longer distinguish between first and second-home purchases, easing the mortgage burden, as second homes typically carry higher interest rates.

Property tax adjustments

• Families without local household registration will be temporarily exempt from property tax on their first home purchase.
• For second and subsequent home purchases, each family member will receive a 60-square-meter property tax exemption.