Shanghai has introduced more than a dozen new policies aimed at getting local property market back on track. The move comes after the central government introduced its new measures last week. The new incentives seem to have gotten the attention of home-buyers.

Shanghai's preferential policies include: shortening the term for exempt business tax from five years to two years when consumers sell ordinary property. The minimum downpayment for the public housing fund has been adjusted to 20 percent.

Shanghai has introduced more than a dozen new policies aimed at getting local property market back on track.

The business tax exemption for the two-year old housing stimulated the second-hand property market in Shanghai.

A lot of second-hand housing is on the market, and the number of consumers has increased by 30 percent. The properties which are close to the subway and under 90 square meters are being welcomed by the market.

One Shanghai Resident said "We calculated after the policy came out, I could save 100,000 yuan if I bought an apartment with two bedrooms within 90 square meters, "

Hua Wei, Director of Real Estate Research Center of Shanghai Fudan University said "The principle of the central government is to support the demand of ordinary commercial housing for self-use. In addition, it's given the local government a lot of lee-way in deciding how to support the policies."

Although a lot of consumers visited the market, the transaction volume didn't increase obviously.

One Shanghai Resident said "I as well as 90 percent of my friends hold a wait-and-see attitude. We don't think it is the right time to buy now."

Insiders said the current price for ordinary property is still too high, and far beyond the standard.

(CCTV October 30, 2008)