Shanghai eases curbs on home ownership, announces non-local property tax exemptions

Shanghai on Monday announced adjustments to its real estate policies, removing restrictions on the number of homes eligible families can buy outside the city's outer ring road.

Single adults would be also be treated as families and enjoy the eased measures, the municipal housing authority said in a statement. The adjustments are set to take effect on Tuesday.

This is the city’s first property policy adjustment this year, which also covers housing provident funds, credit and taxation.

The government said it would raise the maximum amount of individual housing provident fund loans by 15 percent and allow withdrawals from the fund to be used for down payments.

Meanwhile, the Shanghai government said it will temporarily exempt eligible non-local households from paying property tax on their first home.

For second and subsequent properties, a tax-free allowance of 60 square meters per person will be applied after aggregating the household’s total housing area, the authorities said.

REUTERS and STAFF REPORTER