Core Insights - The new policy implemented in Shanghai aims to stimulate the real estate market by relaxing housing purchase restrictions and adjusting mortgage rates, leading to a significant increase in buyer activity and market confidence [1][10]. Policy Adjustments - The Shanghai government announced six key adjustments to real estate policies, including changes to housing purchase limits, public housing funds, housing loans, and tax measures, which took effect on August 26 [1]. - The new policy allows families to purchase unlimited properties in outer ring areas and treats single individuals as families for purchasing purposes [4]. Market Response - Following the policy changes, there was a notable surge in property viewings and inquiries, with some new developments reporting a 20% increase in viewings attributed to the new policy [2][5]. - In the first weekend after the policy was enacted, new home sales in areas like Qingpu saw rapid activity, with many units sold out quickly [2][9]. Mortgage Rate Adjustments - The mortgage rate for existing loans was adjusted, with rates for second homes being converted to first-home rates, resulting in a decrease from 3.45% to 3.36%, a reduction of 9 basis points [1]. - Banks such as China Construction Bank and Beijing Bank have begun processes to adjust existing mortgage rates for clients [1]. Buyer Demographics - The new policy has particularly benefited non-local families who can now purchase homes after one year of social security contributions, as well as local residents who previously faced purchase restrictions [4]. - Buyers reported significant reductions in down payment pressures, with one buyer noting a decrease of nearly 200,000 yuan in upfront costs due to the ability to use public housing funds [4]. Market Trends - The second-hand housing market also experienced increased activity, with agents reporting a 20% rise in viewing numbers and a shift in seller attitudes, leading to price adjustments to attract buyers [6][7]. - The overall sentiment in the market is cautiously optimistic, with expectations that the policy will lead to a more sustained recovery in the coming months [8][10].