(Yicai) Aug. 21 -- After Beijing eased its real estate purchase restrictions, Shanghai introduced new policies aimed at reducing housing costs for residents, including lowering the downpayment ratio for second homes in suburban areas.

Shanghai cut the downpayment ratio for second homes located beyond the Outer Ring Road to 15 percent from 20 percent, according to the city’s latest real estate policies issued yesterday.

After the new policies are implemented, Shanghai’s minimum downpayment ratios for first homes citywide and second homes beyond the Outer Ring Road are both 15 percent, while that for second homes within the Outer Ring Road is still 25 percent.

Shanghai pledged to allocate CNY200 million (USD29.8 million) for phased subsidies to support house trade-in programs. Residents who buy a new home beyond the Outer Ring Road between today and March 31, next year, and sell their old one within the Outer Ring Road in the year before or after the purchase can apply for a subsidy of CNY30,000 to CNY50,000 (USD4,465 to USD7,440) at the real estate transaction center in the district where the new home is located.

Shanghai’s new home sales rose 1 percent in July from a year earlier, marking the first year-on-year increase this year, according to data from Centaline Property. Sales of mid-to-high-end houses remained active, continuing the momentum that started last year.

Pre-owned home prices in the city continued to grow in June for the sixth consecutive month, accumulating an increase of 2.2 percent, per data from the National Bureau of Statistics. This signals a substantial market rebound.

Editor: Futura Costaglione