Core Insights - Shenzhen has introduced significant policy changes to its real estate market, including lowering purchase thresholds, easing corporate buying restrictions, and adjusting mortgage rates, aiming to stimulate demand during the traditional peak season of "Golden September and Silver October" [1][2][3] Policy Changes - The purchase restrictions in Shenzhen have been significantly relaxed, with core areas now limited to three districts, while non-core areas have removed previous limits on the number of properties that can be purchased [2] - For corporate purchases, conditions have been eased, allowing companies to buy properties in core areas under certain conditions and completely removing restrictions in non-core areas [2] - Mortgage rates have been adjusted, with no differentiation between first and second homes, potentially lowering rates by approximately 40 basis points for second homes, providing tangible financial relief for buyers [2] Market Response - Following the announcement of the new policies, there has been a notable increase in buyer activity in Shenzhen, with a reported 10% rise in property visits and immediate purchases by some buyers [3] - Other major cities like Beijing and Shanghai have also implemented similar easing measures, indicating a trend towards more lenient housing policies across first-tier cities [3][4] Market Performance - In Beijing, the new policies have led to a significant increase in market activity, with over 2,800 new residential transactions in August, marking a 2.3% month-on-month increase, and a 4.1% rise in second-hand home transactions [4] - Shanghai's second-hand market has also seen a surge, with daily transactions reaching over 500 units post-policy announcement, indicating sustained demand [4] Broader Implications - The collective actions of major cities signal a shift towards "loosening and activating demand," aimed at providing more opportunities for both first-time and upgrading homebuyers, which is expected to enhance market activity and alleviate price pressures [4][5] - Other cities across the country are likely to follow suit with similar policy adjustments, contributing to a more optimistic outlook for the real estate market during the peak buying season [5]