circular said the new standards will come into effect startingNov 20.
Duringthe past twoyears the steadygrowth in real estate prices had ruled out opportunities for buyers to gain from preferential loan rates with up to 10 percent discounts.
According to data published by the Shanghai Real Estate Trading Center, the average prices ofhomesbetweenInner Ring and Outer Ring was 42,000 yuan per square meter in the first three quarters of 2014. The average price of homes outside the Outer Ring during the same period was 19,000 yuan per sq m.
“Under the old standards, onlysomebuyers could get the discounted rates in Shanghai,” saidWuHuimin, director of residential property at real estate companyDTZEastChina.
The new standards will benefit buyers of the lower-priced smaller homes and will have little impact on the high-end residence market, saidWu.
Most of the home buyers, however, preferred to “wait and see” if the government will relax the policies further.
“The lifting of limits on home loans in October and the newstandards for ordinary homes are signals that the property market policies are being relaxed. I think I will wait for another month to see if more favorable policies will be introduced by the end of 2014,” said Zhai Limin, a 34-year-old prospective home buyer in Shanghai.