Notable changes in Shanghai's home-purchasing policy that came into effect on Tuesday have drawn crowds to sales offices and caused a surge in inquiries.
City authorities issued the notice on Sunday, releasing a set of measures that would take effect on October 1.
The sales office of Jinmao Palace, a new property project near Nanchen Road in Baoshan District, was full of people yesterday, with many queuing for hours for subscription.
"Today is the first day of the property's subscription, with more than 100 groups of customers coming to subscribe," Wang Liping, marketing director of the project, was quoted as saying by Jiefang Daily. "If the number of subscribers exceeds the number of housing units, a lottery will be needed."
Wang had increased his staffers from the usual 20 to the current 70 to handle the huge demand.
"Some customers came to line up for a subscription at 6am, when we were not yet open, and there are still close to 20 groups of customers who didn't make it to the site They chose to directly subscribe online," Wang said.
Chen Lei, the person in charge of a project in Songjiang District, said that although the new policy was introduced only two days ago, the customer inquiries had already increased by 30 percent.
Chen said customers are interested in the specifics of the new policy, especially the cuts in down payment ratio and bank loan interest rates.
A crowd gathers at the sales office of a property project located near Nanchen Road in Baoshan District.
The new policy further relaxed purchase restrictions on housing. Under the new measures, non-Shanghai residents intending to buy a home outside the city's Outer Ring Road would qualify if they had paid social security or personal income tax for at least one year.
In addition, non-locals who had paid social security or personal income tax for at least three years would be eligible to purchase two housing units – the same entitlement as locals.
The minimum down payment ratio for commercial personal housing loans was reduced, as was the VAT exemption period.
Wang said that people's purchasing power has been leveraged as a result of ongoing policy relaxation, which created about 30 percent of new subscriptions.
She said that the policy benefits those who are looking for improved homes.
"I believe the new policy will boost confidence and activate the potential of home purchase," said Yan Yuejin, vice president of the Shanghai E-House Real Estate Research Institute. "Especially, those who came to Shanghai for employment in recent years will be qualified for home purchase more quickly."
