Shenzhen real estate Photo:VCG
Shenzhen, South China’s Guangdong Province, on Sunday announced plans to raise the maximum housing provident fund loan to 2.31 million yuan ($319,155), while further lowering the minimum down payment requirement, making it the latest Chinese city to boost housing provident fund loan support to further unlock demand and revitalize the property market.
Under Shenzhen’s latest policy, the maximum individual housing provident fund loan has been raised from 500,000 yuan to 600,000 yuan, while the maximum for families has increased from 900,000 yuan to 1.1 million yuan. Families meeting certain criteria – such as purchasing their first home in Shenzhen or having two or more children – can qualify for an additional loan increase, according to a post on Shenzhen’s official WeChat account.
These adjustments can be combined, allowing for a maximum loan boost of 110 percent, which raises the individual limit to 1.26 million yuan and the family limit to 2.31 million yuan. Based on past records, more than 90 percent of applicants for first-home loans are eligible for the preferential policy, the post said.
Shenzhen has also revised its minimum down payment requirements. Previously, the minimum down payment for housing provident fund loans was 20 percent for first homes and 30 percent for second homes. Under the new policy, this distinction has been removed, and the minimum down payment is now a flat 20 percent for all home purchases.
Since the start of 2025, multiple localities, including Dalian in Northeast China’s Liaoning Province, Suzhou in East China’s Jiangsu Province, Beijing and East China’s Fujian Province, have introduced new housing provident fund policies.
More than 20 housing provident fund policy adjustments have been introduced nationwide since the start of the year, the Securities Times reported on February 17, citing data compiled by the China Index Academy.
China released a special action plan on Sunday to boost consumption, which mentioned that it will continue to make efforts to stabilize the real estate market. Specific measures include lowering the housing provident fund loan interest rate at an appropriate time and expanding the scope of housing provident fund usage.
From raising loan limits and lowering down payments to implementing intergenerational support policies, this year’s initiatives across various regions highlight a strong push to maximize the housing provident fund’s role in ensuring stability and supporting contributors’ reasonable home purchases and other housing-related needs, Yan Yuejin, research director at Shanghai-based E-house China R&D Institute, told the Global Times on Sunday.
“The implementation of housing provident fund policy tools across the country will have a positive impact on both the first-quarter and full-year development of the real estate market in 2025,” Yan said.
Per data from the Shenzhen Real Estate Intermediary Association, in the 10th week of 2025 (March 3-9), Shenzhen recorded 1,812 secondhand home transactions, up 11.6 percent from the previous week. It was the fifth consecutive week of growth, with weekly transactions exceeding 1,800 units, reflecting a steady increase in homebuyer confidence.
In February, secondhand home transactions in major cities generally grew, while price declines continued to narrow. On a month-on-month basis, secondhand home prices in Chengdu, Southwest China’s Sichuan Province edged up 0.08 percent, marking the fourth consecutive month of increases. Meanwhile, Beijing recorded 11,876 secondhand home transactions, up 87.6 percent year-on-year, extending its growth streak to five consecutive months, another report released by the China Index Academy showed.
Driven by the traditional peak season of “Golden March, Silver April,” rising demand for education-related housing and support policies, homebuyer sentiment is expected to improve, leading to a continued recovery in secondhand home transactions, the report noted.
In addition to stronger loan support, local governments have also ramped up efforts to crack down on illegal practices in the real estate market. For example, Sanya, South China’s Hainan Province, has announced a campaign to address unlicensed real estate agencies, the pre-sale of properties without permits, and multiple sales of the same unit, among other violations.
This year’s Government Work Report delivered and approved during the recently concluded two sessions vowed efforts to ensure stability in the real estate and stock markets.
“We will introduce city-specific policies on adjusting or reducing property transaction restrictions… We will fully tap into potential demand for first homes and better housing,” the report stated.
Since September, supportive government policies have effectively bolstered market confidence, driving positive shifts in the sector, Minister of Housing and Urban-Rural Development Ni Hong told a press conference on March 9.
Ni noted that reforms of fundamental mechanisms in real estate development, financing and sales will be pushed forward to build a new development model for the sector.
