Shanghai Pushes ‘Old for New’ Housing Policy in Attempt to Save Property Market

Despite its superficial attractiveness, the ‘old for new’ housing policy can hardly save China’s property market, says China economist Davy Jun Huang.

An aerial view shows highways and buildings in Shanghai, China, on March 30, 2022. Aly Song/Reuters

News Analysis

Shanghai, a metropolis in China that used to boast skyrocketing property prices, has launched a “old for new” housing policy, following more than 30 Chinese cities who have adopted similar measures in an attempt to save the nation’s failing property market. The policy, however, will not do much good given people’s declining purchasing power and China’s high real estate taxes, according to an economist.