According to a report in China Daily on February 5, 2026
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Shanghai is piloting a new initiative aimed at stabilizing its housing market by acquiring pre-owned apartments to supply government-subsidized rental housing. The program seeks to address diverse leasing needs while promoting a balanced development between homeownership and rental options.
The first batch of projects was officially launched on Monday, with districts including Jing’an, Xuhui, and Pudong New Area piloting the program separately, according to local reports.
“Linking pre-owned properties to rental housing helps reduce the stock of older, less competitive homes,” said Yan Yuejin, deputy head of the Shanghai-based E-House China R&D Institute. “It also encourages existing homeowners to move into new apartments, which can ease inventory pressures in the new housing market.”
Under the plan, apartments of suitable size and design in established communities with convenient transport links will be purchased by district authorities and allocated to meet rental demand from young professionals, university graduates, and new residents.
For instance, Pudong aims to acquire flats under 70 square meters and priced below 4 million yuan ($580,000) within the Inner Ring Road area. Jing’an district is prioritizing moderately priced apartments, while Xuhui is sourcing small units through affordable housing developers, standardizing renovations and fittings after acquisition.
Financial backing from China Construction Bank is expected to secure the supply of these government-subsidized rentals, helping lower living costs for younger residents and attracting talent to the city, said Zhang Wenjing, general manager of Shanghai data at China Index Academy.
The initiative also aims to stabilize transactions and prices in the pre-owned housing market, drive sales of new apartments, and maintain a healthy balance between ownership and rental supply.
Separately, Shanghai has confirmed the continuation of its property tax pilot for eligible homeowners through January 2031. In Shanghai, taxes are levied on families with more than 60 square meters per person, at rates of 0.4% or 0.6% of total property value, depending on unit price per square meter.
The city and Chongqing are the only two Chinese mainland cities currently collecting property taxes, a measure originally introduced in 2011.
By combining rental support with targeted property tax policies, Shanghai is seeking to promote a more resilient and inclusive urban housing market while ensuring long-term stability for both owners and renters.