Shanghai to Reshape Real Estate Sector, Expand Affordable Rental Housing

Shanghai plans to supply 25-28 million square meters of new commercial housing between 2026 and 2030 while renovating 30-40 million square meters of old residential communities by 2030, according to Shanghai's 15th Five-Year Plan for housing and urban-rural development.

This is in contrast to the actual supply of 42 million square meters of new commercial housing during the 14th Five-Year Plan period (2021-2025), when the city also renovated 68 million square meters of old residential communities.

"Shanghai will accelerate the formation of a new model for the development of the real estate industry to realize the livability of a higher quality," according to the plan, which also noted the city will push forward the reforms in land development, financing and sales and strengthen management for expanded rental and leasing homes.

By 2030, there will be an additional 250,000-270,000 units of affordable rental homes, according to the plan.

Shanghai will prioritize higher-quality residential construction and management, including longer waterfront shorelines along the Huangpu River and Suzhou Creek, renovation of old housing units with small beams and thin slabs, and more affordable homes for deliverymen, sanitation workers, and domestic helpers.

By 2030, the city will create more than 120,000 beds for individuals referred to as "urban constructors in the new era."

The target is to further advance integrated urban-rural development, improve institutional mechanisms for urban renewal, elevate urban governance and speed up transformation of the construction industry to consolidate the foundation for better livability, resilience and safety of the city's housing and urban-rural development.