Shanghai joins major cities in loosening commercial property loan rules
Beijing remains the lone top-tier holdout as other cities ease their down payment requirements
Shanghai has become the latest mainland Chinese city to lower the minimum down payment requirement for loans on commercial-use properties – including shops and business flats – from 50 per cent to at least 30 per cent.
Analysts said the move could help reduce excess inventory in the struggling commercial real estate market, though stronger measures might still be needed.
“There is still a meaningful gap between the minimum down payment ratio for residential properties and that for mixed-use commercial-residential properties,” said Edward Chan, a Greater China property analyst at S&P Global Ratings.
“To further support demand, this gap may need to narrow further.”
China cut minimum down payments for residential mortgages to 15 per cent in 2024, according to the People’s Bank of China and the National Financial Regulatory Administration.
Shanghai’s move marks its first adjustment to commercial property lending rules in more than a decade, and follows similar easing measures in cities including Shenzhen, Guangzhou, Chongqing, Chengdu, Wuhan and Changsha. Beijing remains the only top-tier city yet to make such a change.