Group 1 - The average daily signing of second-hand houses in Shanghai reached 680 units in September, with three days exceeding 1,000 units, including a peak of 1,165 units on September 27, marking a 141-day high [2] - The transaction volume of second-hand houses in Shanghai has increased for two consecutive months, with a slight upward trend in the transaction curve for August and September [2] - The total transaction volume for the third quarter of 2025 reached 59,638 units, representing a year-on-year increase of 10.02% compared to the third quarter of 2024 [3] Group 2 - A new housing policy was implemented in Shanghai on August 25, which includes measures such as loosening purchase restrictions outside the outer ring, recognizing single adults as families, and adjustments to the provident fund [5] - Following the new policy, the first weekend saw a surge in daily signing volume, exceeding 1,000 units for the first time in 61 days, reaching 1,103 units [7] - Major banks announced a reduction in second-home mortgage rates, with new rates as low as 3.09% and existing rates at 3.36% [7] - New regulations from the State Administration of Foreign Exchange allow foreign individuals to process foreign exchange payments for property purchases in advance, and the scope of foreign exchange fund usage for enterprises has been expanded [7] - The Shanghai property tax policy was optimized on September 19, providing tax exemptions for first-time homebuyers and certain qualified individuals starting January 1, 2025 [7] - The "Golden September" market is gaining momentum, instilling confidence in the market, and the continuation of this trend into "Silver October" will be a key focus [7]

Core Viewpoint - The recent adjustment of the property tax policy in Shanghai aims to temporarily exempt eligible non-local resident families from property tax, primarily to attract and retain talent in the city [1][4][22]. Summary by Sections Policy Announcement - On September 16, 2025, the Shanghai Municipal Finance Bureau and the State Taxation Administration of Shanghai issued a notification regarding the optimization and adjustment of the personal housing property tax pilot policy, allowing eligible non-local resident families to be temporarily exempt from property tax [1][5]. Eligibility Criteria - Eligible non-local resident families include: 1. High-level talents and urgently needed talents in key industries who hold a Shanghai residence permit and work in the city [2]. 2. Homebuyers who have held a Shanghai residence permit for at least three years and live and work in the city [2]. Tax Exemption Scope - The scope of temporary property tax exemption includes: 1. Newly purchased homes in Shanghai that are the family's first home [3]. 2. For second homes and beyond, if the combined area of all family homes does not exceed 60 square meters per person, the property tax is exempt; if it exceeds, tax is calculated on the excess area [3][9]. Historical Context - Shanghai has been a pilot city for property tax since January 2011, with only Shanghai and Chongqing currently implementing such a tax in China [3][7]. The recent policy adjustment is a response to the new regulations announced on August 25, 2025, which aimed to stimulate demand for improved housing [4][22]. Market Impact - Following the announcement of the new policy, there was a notable increase in new home transactions, with a 119.37% month-on-month increase in the week following the policy release [17]. However, the market showed signs of cooling afterward, with a decrease in transaction volume due to increased supply [17][19]. Tax Rate and Calculation - The property tax is calculated based on the market price of the taxable housing, with a standard tax rate of 0.6%, which can be reduced to 0.4% if the market price is below a certain threshold [10][12]. The average selling price of newly built commercial housing in Shanghai for 2025 is reported at 47,223 yuan per square meter [12]. Revenue Context - The overall property tax revenue in Shanghai was approximately 237 billion yuan in 2022, with a projected revenue of around 100 billion yuan for the current year [13]. The adjustments in the property tax policy are expected to have a limited impact on overall tax revenue [13][22]. Long-term Benefits - The policy adjustment includes provisions for tax refunds for eligible families who have already paid property tax under the previous regulations, which is seen as a significant benefit for those planning to reside long-term in Shanghai [22].

Core Viewpoint - The Shanghai government has announced adjustments to the property tax pilot program to better meet residents' housing needs and promote stable development in the real estate market, effective January 1, 2025 [2][5]. Summary by Sections Policy Adjustments - The new policy provides exemptions from property tax for high-level talents and urgently needed professionals who hold a Shanghai residence permit and have lived and worked in the city for at least three years when purchasing their first home [2]. - For those purchasing a second home or more, property tax exemptions apply if the average per capita housing area does not exceed 60 square meters, including the exempted area [2][5]. Tax Refunds - Homebuyers who hold a residence permit for less than three years will initially be subject to property tax, but can apply for refunds once they meet the three-year requirement and if their housing qualifies for the exemption [3][4]. Implementation Details - The policy is part of the execution details following the "8.25" real estate policy announced on August 25, which also includes tax exemptions for first-time homebuyers who are non-local residents [5].

Core Points - The Shanghai Municipal Finance Bureau and the State Taxation Administration of Shanghai have announced adjustments to the property tax pilot program to better meet residents' housing needs and promote stable development in the real estate market [1][3] - The new policy will take effect on January 1, 2025, and aims to provide tax exemptions for certain categories of homebuyers [1][3] Summary by Category Policy Adjustments - The adjustments clarify that high-level talents and urgently needed talents who hold a Shanghai residence permit and have lived and worked in Shanghai for at least three years will be exempt from property tax on their first home purchase [3] - For those purchasing a second home or more, if the average housing area per family does not exceed 60 square meters, the new purchase will also be exempt from property tax [3] - If the average area exceeds 60 square meters, property tax will be calculated based on the excess area according to the interim measures [3] Tax Refunds - Homebuyers who do not hold a Shanghai residence permit for three years will initially be taxed according to the interim measures, but can receive a refund for any property tax paid once they meet the three-year requirement [3] - The policy allows for tax refunds for any overpaid taxes after the new regulations come into effect [3]