Chinese cities stepped up to tighten restrictions for purchasing first, second and even third homes during the golden week of National Holiday. The introduction of new restrictions is seen as a vital step to cool-down the over-heated real-estate market.
From 1st October to 7th October, there were totally 20 cities announced their new regulations on house purchasing. They are Beijing,Tianjin, Suzhou, Chengdu, Zhengzhou, Wuxi, Jinan, Hefei, Wuhan, Shenzhen, Guangzhou, Foshan, Nanning, Nanjing, Xiamen, Zhuhai, Dongguan, Fuzhou, Huizhou and Nanchang.
In Beijing, new rules, published by the Municipal Housing and Urban Construction Committee, required a down payment equal to 35% of the purchasing price on first home. To purchase a second home, the local residents would be required to pay a down payment of 50% of the total price, as for those non-local residence, the down payment would be raised to 70% or more.
In Chengdu, local government announced that buyers of second homes in its 10 districts and 1 county would require a down payment of at least 40%.
In Jinan, down payments for local residents purchasing second home would increase from 30% to 40%, and those who own more than two properties, are restricted from further purchasing. The government of Tianjin announced that there would be a limitation to those non local residents on purchasing a second home in the crowded downtown area.
According to Zhang Dawei, a chief analyst at Centaline Property, if there will be tightened policy on credit, the price of property will be readjusted in the fourth quarter of the year.