Core Viewpoint - Shanghai's real estate market is set to benefit from a new property tax policy aimed at supporting first-time homebuyers and those upgrading their housing, effective from January 1, 2025 [2][3]. Group 1: Policy Details - The new policy introduces differentiated property tax exemptions for two key groups: high-level talents and those with Shanghai residence permits who purchase their first home [2]. - For families purchasing a second home, a tax exemption applies if the average area per person does not exceed 60 square meters, promoting improved housing demand [2]. - A "pay first, refund later" mechanism is established for buyers who have not held a residence permit for three years, allowing them to reclaim taxes paid after meeting the conditions [3]. Group 2: Market Trends - The Shanghai real estate market is experiencing a phase of "differentiated adjustment" and "structural optimization," with real estate development investment increasing by 2.6% year-on-year from January to August [3]. - New housing starts have decreased significantly, with a 28.5% drop in new commercial housing construction area during the same period [4]. - Despite a slight increase in new home prices by 0.4% in August, the second-hand home market shows a decline of 1%, indicating a divergence in market performance [4].