Shang­hai in­creases house down pay­ment re­quire­ments

City au­thor­i­ties say they are seek­ing to curb spec­u­la­tion, push for a ra­tio­nal mar­ket

China Daily (USA) - - BUSINESS - ByWUYIYAO in Shang­hai wuyiyao@chi­nadaily.com.cn

Shang­hai’s Shang­hai’s hous­ing hous­ing au­thor­i­ties au­thor­i­ties an­nounced an­nounced thatthat they they are are step­ping step­ping up up lim­i­ta­tions lim­i­ta­tion­son homeon pur­chases home­pur­chas­esin the in city. the city.In par­tic­u­lar,In par­tic­u­lar, rais­ing rais­ing down down pay­ment­pay­ment re­quire­ments re­quire­mentsas part of as an part ef­fortof to an re­strain­ef­fort to fast re­strain grow­ing­fast grow­pro­cess, house prices by the lim­it­ing city’s spec­u­la­tive­hous­ing mar­ket buy­ing. may see fluc­tu­a­tions in An­a­lysts­both trad­ing­said that ac­tiv­i­ties­more mea­sure­sand av­er­age could prices,be tak­en­they said. since pol­icy The mak­ers newhad not ex­haust­ed­mea­sure an­nouncedthe many tool­son they Mon­day had in said the that box. theIn the re­quired process, down the city’spay­ment hous­ing for mar­ket first-home may buy­erssee fluc­tu­a­tion­swas raisedtono­lessthan35per­centin both trad­ing ac­tiv­i­ties of and the av­er­age­to­tal price, prices, com­paredthey said. to the The pre­vi­ous new re­quire­ment mea­sureof no less an­nouncedthan 30 per­centon Mon­day. said that The the def­i­ni­tion re­quired of down first-home pay­ment buyer for was first-home­also nar­rowed­buy­ers wasto those raised whoto no do less not than own 35 a per­centhome andof the also to­tal have price, no com­pare­drecord of toa hous­ingthe pre­vi­ous loan re­quire­ment­from any bankof no na­tion­wide.less than 30 per­cent Pre­vi­ously,. the to Thethe newmea­sure.def­i­ni­tion of first-home buyer Other was buy­ers also are nar­rowed re­quired toto pay those at who least do 50 not per­centown a down home pay­ment,and also have­and buy­er­sno recordof non­stan­dardof a hous­ing loan apart­ments,from any such bankas vil­las na­tion­wide.and Pre­vi­ously, lux­u­ri­ous the apart­ments, def­i­ni­tion lookedare re­quire­donly at to hous­ing­pay at least loans 70 from per­cent banks down,in the ac­cord­ing city. Home­buy­er­sto the newmea­sure.who have pre­vi­ously “The ap­plied­move to­tal­ly­for a home rules loanout spec­u­la­tive­and have cleared­buy­ers in theirthe hous­ing­mar­ket debt are not de­finedin Shang­hai,as first-home­giv­ing no buy­ers, chance ac­cord­ing­for them to to lever­agethe new home­loans­mea­sure. to buy­more­a­part­ments Other than buy­ers the­yare re­quired ac­tu­ally to need,”pay at said least Feng50 per­cent Shuguang, downa realty pay­ment, agent and with buy­ers Shang­haiof non­stan­dard Dongyun Real apart­ments,Es­tate Ltd. such cen­tas vil­las to and 40 lux­u­ri­ous­per­cent apart­ments, down pay­ment are re­quire­ments.re­quired to pay Theat im­ple­men­ta­tion­least 70 per­cent down,of the ac­cord­ing new mea­sures­means­man­y­ofto the new mea­sure. th­ese pur­chasers­mayno­longer­have“The move to­tally rules out the spec­u­la­tive req­ui­site buy­ers cap­i­talin the for hous­ing the in­creased mar­ket downin Shang­hai, pay­ments giv­ing of 50 no chance per­cent for to them70 per­cent,to lever­age said Jameshome loans Macdon­ald,to buy more Head apart­ments of Sav­ills than China they Re­search. ac­tu­ally need,” said “While Feng this Shuguang,is un­likelya realty to have agent an with im­me­di­ate Shang­hai im­pact Dongyun on pric­ing,Real Es­tate re­ducedLtd. trans­ac­tion vol­umesTh­ese poli­cieswill most could likely have coola price sig­nif­i­cant growth im­pact fur­ther.on trans­ac­tion Ad­di­tion­ally, vol­ume­sif trans­ac­tionas many re­cent vol­umes deals have re­main been low house­holds­for a sus­tained up­grad­ing pe­riod prop­er­ties.of time, this

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Buy­ers se­lect apart­ments at a real es­tate fair.

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