Shanghai increases house down payment requirements
City authorities say they are seeking to curb speculation, push for a rational market
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
Buyers select apartments at a real estate fair.