In a bid to revive the property market, Shenzhen, a major city in South China’s Guangdong Province, announced significant changes to its housing provident fund policies. On Sunday, the city revealed plans to raise the maximum housing provident fund loan to 2.31 million yuan ($319,155) and further reduce the minimum down payment requirement, following in the footsteps of other Chinese cities aiming to unlock demand and stabilize the market.
Under the new policy, the maximum loan for individuals will increase from 500,000 yuan to 600,000 yuan, while families will see their maximum loan rise from 900,000 yuan to 1.1 million yuan. Families who meet specific criteria—such as purchasing their first home or having two or more children—can qualify for additional loan increases. These adjustments allow for a maximum loan increase of up to 110%, bringing the individual limit to 1.26 million yuan and the family limit to 2.31 million yuan. According to Shenzhen’s official WeChat post, more than 90% of first-time home loan applicants are eligible for the preferential policy.
The city has also updated its down payment requirements. Previously, the minimum down payment for first homes was 20%, while second homes required 30%. The new policy standardizes the down payment to 20% for all home purchases, removing the distinction between first and second homes.
Shenzhen is not alone in implementing such changes. Since the start of 2025, cities like Dalian, Suzhou, Beijing, and several regions in Fujian Province have introduced similar housing provident fund policies. As of mid-February, over 20 adjustments had been made nationwide, according to the Securities Times.
In line with these efforts, China announced a special action plan on Sunday to further support consumption, with specific measures aimed at stabilizing the real estate market. These measures include potential future reductions in housing provident fund loan interest rates and expanding the fund’s usage scope.
Yan Yuejin, Research Director at Shanghai-based E-house China R&D Institute, emphasized that these initiatives, including increased loan limits, lower down payments, and intergenerational support policies, are designed to bolster market stability and help individuals meet housing needs. He predicts that the implementation of housing provident fund policies will positively influence both the first-quarter and full-year performance of the real estate market in 2025.
Recent data from the Shenzhen Real Estate Intermediary Association shows an uptick in market activity, with 1,812 secondhand home transactions recorded in the 10th week of 2025—an 11.6% increase from the previous week. This marks the fifth consecutive week of growth, with weekly transactions consistently exceeding 1,800 units. This steady increase signals a rise in homebuyer confidence.
In February, secondhand home transactions rose in major cities, with prices continuing to stabilize. For example, Chengdu saw a slight increase in secondhand home prices for the fourth consecutive month, while Beijing recorded a dramatic 87.6% year-on-year rise in transactions.
As the traditional “Golden March, Silver April” peak season approaches, coupled with rising demand for education-related housing and supportive government policies, homebuyer sentiment is expected to improve, leading to further growth in secondhand home transactions.
Local governments are also intensifying efforts to combat illegal activities in the real estate market. In Sanya, Hainan Province, authorities have launched a crackdown on unlicensed real estate agencies and other violations, such as pre-selling properties without permits and engaging in multiple sales of the same unit.
The recent Government Work Report, delivered during the two sessions, emphasized efforts to stabilize both the real estate and stock markets. It noted that city-specific policies would be introduced to adjust or reduce property transaction restrictions and tap into the potential demand for first homes.
Since September 2024, government policies have helped rebuild market confidence, driving positive shifts in the sector. Minister of Housing and Urban-Rural Development Ni Hong announced on March 9 that reforms in real estate development, financing, and sales will continue to advance, aiming to create a new development model for the industry.
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