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PanAsianBiz

Homebuyers Required to Make 40% Deposit

by BBelew57 on September 26th, 2007

Homebuyers in China who hope to buy a second apartment will likely be required to put down a 40% deposit to the bank.

In the future, it will be raised to 50%.

Currently the minimum deposit is 30% for a home 90 square meters or bigger, 20% for anything smaller.

Interest rates are expected to be raised by 10% also.

Reasons -  

1. to curb the rise in house prices

2. to stop speculation in the property market.property.china.jpg

Current lending rates are 7.83% and could go up to 8.613%.

Commercial banks are also required to stop lending to property developers who hoard land and house for speculation purposes.

In July, property prices in 70 major cities in China rose 7.5%. Last month, the prices went up another 8.2%.

Property prices in Beijing are 12.1% higher than a year earlier.

In Shenzhen, prices are up 20.8% from last year.

Please, please, don't anybody burst the bubble in Shenzhen.

Please.

Do you own property in China?

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POSTED IN: All about China

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