Shanghai will launch a batch of new housing projects and lower costs for real estate developers to boost the housing market, which has seen a slump in sales over the past two months due to stringent restrictions prompted by COVID-19 outbreaks.

The financial hub will speed up approvals for property projects and supply new residential developments among 50 measures in eight categories to support its battered economy, according to a plan unveiled by the Shanghai municipal government on Sunday.

In February, Shanghai launched a first batch of 33 new housing projects. It was supposed to launch a second batch in April, but was interrupted by COVID-19 control measures. The first batch is expected to be offered on the market together with the second batch, according to Lu Wenxi, an analyst with Shanghai Centaline Property.

Sales in the new housing market will bottom out and rise, "but the height and duration of the rebound remains to be seen," said Lu.

In April and May, new housing sales in Shanghai fell to record lows, at 100,000 square meters and 20,000 square meters respectively, according to data from the Shanghai E-House Real Estate Research Institute.

In comparison, data from the China Index Academy showed that 10.59 million square meters of new housing were sold in Shanghai in 2021, for a monthly average of about 880,000 square meters.

To revitalize the market, Shanghai will also reduce land acquisition costs for developers, optimize land transfer conditions, and allow developers to apply for an extension or pay the transfer fee in installments.

The plan also shows that the financial hub will increase the area of construction land for 2022, and support land demand for key industrial projects in various districts.

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Shanghai publishes economic recovery and revitalization plans following COVID-19 outbreak