Second homes need lower down payment
Updated: 2015-09-01 07:10
By Zheng Yangpeng(China Daily)
|
|||||||||||
Apartment towers are seen in the southern Chinese city of Shenzhen Aug 28, 2015. [Photo/Agencies] |
China lowered the down payment for those who use their housing provident funds to buy a second home, signaling its intention to prop up the property market in a time of battered confidence.
In a statement jointly released by the Ministry of Housing and Urban-rural Development, Ministry of Finance and the central bank on Monday, the minimum payment for buyers who use their housing funds to buy a second home was lowered to 20 percent from 30 percent, if buyers had paid off their previous mortgage.
The statement also said the four most expensive cities in China-Beijing, Shanghai, Guangzhou and Shenzhen-could decide by themselves whether to follow the move.
The move will give second-home buyers the same policies enjoyed by first-time buyers, which would encourage more potential buyers to purchase second homes. The move followed last Tuesday's interest rate cut, after which the benchmark lending rate for five-year or longer loans was lowered to 5.15 percent. The same rate for housing provident fund loans was lowered to 3.25 percent, the lowest in history.
The interest rate cut was followed by last Thursday's decision to ease previous restrictions on foreign institutions and individuals buying properties in China.
"Current housing policies might be the most accommodating in years, as policymakers are concerned with the recent disappointing economic data and eroding confidence," said Yan Yuejin, a Shanghai-based analyst with E-house China R & D Institute. The real estate and construction sectors make up about a third of the economy.
China's real estate investment growth further slumped to 4.3 percent in the first seven months, according to the National Bureau of Statistics. It was still a drag on GDP that is growing at 7 percent, but analysts believe investment has already hit the bottom as property sales have rebounded since the second quarter, also due to policy easings.
The latest survey of home prices, released on Monday, showed the average home price in 100 cities monitored by China Index Academy, a research company owned by SouFun Holding, rose 0.95 percent in August, an acceleration from July's 0.54 percent growth.
The batch of stimulus policies, combined with fresh construction projects offered in the market, will make for robust housing sales in September and October, China Index Academy said.
Related Stories
Senior economist backs national property tax 2015-08-11 17:40
China housing market regains momentum 2015-08-03 17:00
Realty prices continue recovery 2015-08-01 09:13
Surge in price of first-tier city homes 2015-07-30 14:54
China's housing market continues to warm up 2015-07-18 13:54
Today's Top News
China to cut troops by 300,000: Xi
China holds parade, vows peace on war anniversary
Xi awards medals to veterans
New fund set to boost small firms
$16b added by 50 brokerages to support shaky market
PLA to showcase top weapons for the first time in parade
Xi meets with former KMT chairman
Migrants protest as Hungary shutters Budapest train station
Hot Topics
Lunar probe , China growth forecasts, Emission rules get tougher, China seen through 'colored lens', International board,
Editor's Picks
A for entertainment,
|
V-Day parade for 70th WWII anniversary |
Tianjin blasts: Death, damage and bravery |
NE China: From powerhouse to poor relation |
Worlds apart in a different class |
Road map points way for new industrial cluster |