On August 27th, the Shanghai Municipal People's Government issued a notice on optimizing the supply structure of newly allocated land for commodity housing in the city, covering the optimization of the standard building area for small-sized residential units in newly allocated commodity housing land, the supply ratio, and the regional planning of the structure of newly allocated commodity housing land.

On August 27th, the Shanghai Municipal People's Government issued a notice on optimizing the supply structure of newly allocated land for commodity housing in the city, covering the optimization of the standard building area for small-sized residential units in newly allocated commodity housing land, the supply ratio, and the regional planning of the structure of newly allocated commodity housing land.

Yan Yuejin, Deputy Director of the E-House Research Institute in Shanghai, stated that this policy fully demonstrates that Shanghai is based on changes in supply and demand and the orientation of improving housing demand. At the same time, it is based on the "people, house, money" model, which has further relaxed and guided the housing layout policy.

"After this rule adjustment, Shanghai will increase the supply of improved products in the future, thereby easing the supply-demand contradiction," said Chen Julan, a senior analyst at China Index Research Institute in Shanghai.

Specifically, in terms of optimizing the standard building area for small-sized residential units in Shanghai's real estate market, the standard building area for small-sized residential units in multi-story, low-rise, and high-rise buildings will be adjusted to 100 square meters, 110 square meters, and 120 square meters, respectively, based on the average per capita housing area in Shanghai, family population structure, market demand for housing types, and housing design and construction.

Analysts pointed out that before this, the standard for small-sized residential units in Shanghai was that the building area of multi-story residential buildings should not exceed 90 square meters, the building area of low-rise residential buildings should not exceed 95 square meters, and the building area of high-rise residential buildings should not exceed 100 square meters.

Industry insiders believe that after this policy adjustment, the size of small-sized residential units in Shanghai can be larger. "Taking high-rise residential buildings, with 10 floors or more, as an example, the standard for small-sized units used to be 100 square meters, but now it is 120 square meters, which is an increase of 20 square meters in the unit size," said Yan Yuejin.

It is worth noting that shanghai adjusted the standard and proportion of household size in a batch of land auctions earlier this year. In March of this year, the first batch of the second round of land auctions released by shanghai increased the maximum construction area of small and medium-sized residential units in multi-story, small high-rise, and high-rise buildings, and reduced the proportion of small and medium-sized units.

"Unlike before, this time Shanghai officially issued the policy in the form of a document." Yan Yuejin said, the release of this new policy means that in the future, in terms of new house construction design, various real estate projects will launch more and larger units, which will better meet the needs of different levels.

Analysts believe that this policy also indicates that shanghai will bid farewell to the long-standing '7090 policy.'

It is reported that the '7090 policy' refers to the 'Opinions on Implementing the Requirements of the New Housing Structure Ratio,' issued by the former Ministry of Construction on July 6, 2006, which clearly stipulates the ratio of new housing structures: 'From June 1, 2006, in the total area of newly approved and newly started commodity housing in each city, the proportion of housing with a construction area of 90 square meters or less (including economically affordable housing) must account for more than 70%.'

However, as the era of traditional housing shortage gradually becomes a thing of the past, the demand for improved housing in the market continues to grow, and the calls to adjust the '7090' policy have been increasing.

Regarding the proportion of small and medium-sized residential units in newly auctioned commodity housing land, shanghai's policy this time stipulates that, in principle, the area between the inner and outer ring roads should not be less than 70%, the area inside the inner ring road should not be less than 60%, the new city and key transformation areas in the north and south should not be less than 60%, and other areas outside the outer ring road should not be less than 50%. The policy continues to include the allocation of 5% indemnificatory apartments and 15% self-owned rental housing in the overall planning scope of the housing structure of various types of newly built commodity housing land.

In addition, shanghai also announced this time to strengthen the regional integration of the housing structure of newly auctioned commodity housing land. Strengthen regional coordination, relevant districts (committees) can, based on the overall urban planning and unit planning, coordinate small and medium-sized units for commodity housing on land plots planned for commodity housing under the principle of maintaining the total construction area unchanged; balance the projects for newly auctioned commodity housing land plots within a certain period; and specify the specific plot planning and design conditions in the land transfer contract.

A real estate analyst pointed out, "Shanghai's latest policy represents a new trend in the national real estate industry, that is, the continuous effort in pursuing good housing products. It is expected that there will be room for coordinated optimization in the future policy advancement process."

It further states that with the deep implementation of this policy in Shanghai, it will not only bring a better living experience for homebuyers, but also provide a strong demonstration and reference for the healthy development of the national real estate market.