‘or­di­nary’ apart­ments

China Daily (Canada) - - BUSINESS -

cir­cu­lar said the new stan­dards will come into ef­fect start­ingNov 20.

Dur­ingthe past twoyears the steady­growth in real es­tate prices had ruled out op­por­tu­ni­ties for buy­ers to gain from pref­er­en­tial loan rates with up to 10 per­cent dis­counts.

Ac­cord­ing to data pub­lished by the Shang­hai Real Es­tate Trad­ing Cen­ter, the av­er­age prices ofhomes­be­tweenIn­ner Ring and Outer Ring was 42,000 yuan per square me­ter in the first three quarters of 2014. The av­er­age price of homes out­side the Outer Ring dur­ing the same pe­riod was 19,000 yuan per sq m.

“Un­der the old stan­dards, onlysome­buy­ers could get the dis­counted rates in Shang­hai,” saidWuHuimin, di­rec­tor of res­i­den­tial prop­erty at real es­tate com­pa­nyDTZEastChina.

The new stan­dards will ben­e­fit buy­ers of the lower-priced smaller homes and will have lit­tle im­pact on the high-end res­i­dence mar­ket, saidWu.

Most of the home buy­ers, how­ever, pre­ferred to “wait and see” if the gov­ern­ment will re­lax the poli­cies fur­ther.

“The lifting of lim­its on home loans in Oc­to­ber and the new­stan­dards for or­di­nary homes are sig­nals that the prop­erty mar­ket poli­cies are be­ing re­laxed. I think I will wait for another month to see if more fa­vor­able poli­cies will be in­tro­duced by the end of 2014,” said Zhai Limin, a 34-year-old prospec­tive home buyer in Shang­hai.

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