Local governments in China announced number of property market-cooling measures over the weekend, in order to reduce fears about a real estate bubble.
Several cities tightened rules for home purchases, starting with capital city Beijing on Friday, which increased the down payment required on real estate purchases.
First-time buyers must now have a down payment equivalent to 35 % of the purchase price, which was 30 % earlier. On the other hand buyers of a second property will have to put down at least half of the selling price.
The decision comes after China’s richest man, Wang Jianlin, told CNN that the country’s property sector was in the “biggest bubble in history,” noting that it was difficult for Beijing to avoid fanning overheated markets in some cities while stimulating broader economic growth.
Meanwhile, the neighboring city of Tianjin said it would stop people who do not have the local residence permit from buying a second property in the city’s downtown area.