地产经纬丨上海“商改住”破冰：时隔八年，“新政”走向精细化和规范化

Core Viewpoint - The recent policy by the Shanghai Municipal Government to allow the conversion of existing commercial buildings into residential spaces marks a significant shift in the "commercial-to-residential" (商改住) policy, which had been on hold for eight years, aiming to balance work and living spaces in core urban areas and provide new investment opportunities for social capital [1][3][4]. Group 1: Policy Changes - The new policy permits existing commercial buildings to accommodate rental housing, elderly care, and childcare functions, establishing a full-cycle contract management model for regulating the updated functionalities of these buildings [1]. - The reopening of the "commercial-to-residential" policy is seen as a response to the evolving real estate market and urban development needs, aiming to alleviate the mismatch between work and living spaces in core areas [3][4]. Group 2: Historical Context - The development of the "commercial-to-residential" market in Shanghai has been tumultuous, with a peak in 2016 when 42,306 hotel-style apartments were sold, accounting for about 25% of the total new residential sales that year [2]. - Following a period of chaotic market practices and safety concerns, the Shanghai government paused the approval of such projects in 2017, implementing a series of regulatory measures to restore order [2]. Group 3: Market Dynamics - The current real estate market in Shanghai is under pressure, with the average vacancy rate for office buildings rising to 21% and rental prices declining by 2.8% in the second quarter [6]. - The commercial real estate market has seen a decrease in large transactions, with only 42 significant deals recorded in the first half of 2025, totaling nearly 25.8 billion yuan, reflecting a contraction compared to the previous year [6]. Group 4: Implementation Strategy - The new policy introduces a detailed classification of management requirements for "commercial-to-residential" areas, encouraging a mix of functionalities in core urban zones, including technology innovation, commercial hotels, and educational services [4][5]. - In community center areas, the policy emphasizes enhancing community vitality and allowing for a mix of commercial services, cultural activities, and rental housing, which aims to improve living standards and support local entrepreneurship [5]. Group 5: Regulatory Measures - Despite the policy shift, there are stringent management requirements to prevent new market chaos, such as prohibiting the division of commercial buildings into smaller units through non-physical means, ensuring clear property boundaries [7].