Shanghai Commercial Property Minimum Down Payment Ratio Reduced to 30%

Securities Times Reporter Wu Jiaming

On March 16, according to the official website of the Shanghai headquarters of the People’s Bank of China, the Shanghai Branch of the People’s Bank of China, in conjunction with the Shanghai Regulatory Bureau of the China Financial Supervision and Administration Bureau, issued the “Notice on Adjusting the Minimum Down Payment Ratio Policy for Commercial Residential Loans in Shanghai.” The following adjustments have been made to the commercial property loan policy in Shanghai: Starting from March 16, 2026, the minimum down payment ratio for commercial properties (including “mixed-use residential and commercial” properties) in Shanghai is adjusted to no less than 30%. Banking financial institutions within the jurisdiction should determine the specific down payment ratio for each loan reasonably, based on the lower limit requirements of the notice, combined with their operational conditions and customer risk factors.

Generally, commercial properties refer to real estate used specifically for commercial activities, including shops, apartments, office buildings, shopping malls, hotels, and other types of real estate products. Among these, commercial apartments are of particular interest. Previously, the minimum down payment ratio for commercial property loans in China was typically 50%, with some projects requiring higher down payments. In January this year, the People’s Bank of China and the China Financial Supervision and Administration Bureau jointly issued a notice to lower the minimum down payment ratio for commercial property loans to no less than 30%.

Previously, several cities, including Shenzhen, have adjusted their commercial property loan policies, lowering the minimum down payment ratio to at least 30%.

Centaline Research Institute believes that, in recent years, the oversupply in the commercial office market has become an industry consensus. Against this background, multiple cities have introduced supportive policies to promote commercial office projects into operational channels, including allowing existing commercial office projects to be converted into rental housing and supporting building compatibility. Some analysts suggest that optimizing the allocation of commercial real estate resources and lowering the down payment ratio can guide resources toward more efficient sectors and projects. Commercial real estate projects with poor location or management may attract new investors or operators due to policy incentives, and through re-planning, renovation, and operation, resources can be better allocated to improve overall utilization efficiency of commercial real estate.

(Edited by: He Chong)

【Disclaimer】This article only reflects the author’s personal views and has no relation to Hexun.com. Hexun.com maintains neutrality regarding the statements and opinions expressed in this article and does not provide any explicit or implicit guarantees regarding the accuracy, reliability, or completeness of the content. Readers are advised to use this for reference only and bear all responsibilities themselves. Email: news_center@staff.hexun.com