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Beijing, following suit with the three largest tier-one cities in China - Shangh, Guangzhou and Shenzhen - has eased its real estate policies to stimulate demand. The city is now allowing non-residents to purchase homes within core residential zones located inside the fifth ring road if they have pd social insurance or personal income tax for at least three years. This move lowers their previous requirement of five years.
To further support property buyers, Beijing has implemented new down payment ratios: a minimum ratio of 15 applies to first homes, and it's been set at 20 for second homes. The city is also guiding commercial banks to gradually lower the interest rates on existing mortgage loans to levels comparable to those offered on new loans.
The latest measures are set to take effect from October 1st when China's national holiday begins. Beijing's action aligns with central government instructions to halt the decline in property prices, marking the most robust support package announced so far for China's struggling real estate market.
According to a statement from the municipal housing commission, this easing of regulations is med at boosting demand and reviving a sector that has seen new-home prices fall at the fastest pace since 2014. The directive by top leaders to stabilize the real estate market includes encouraging cities like Beijing to revise home-buying restrictions.
On September 29th, China's central bank announced plans for refinancing of mortgages, confirming earlier reports from Bloomberg News that emphasize the urgency with which China is acting to prevent a housing-led slowdown in its economy. This step towards stabilizing the real estate market comes as China faces increasing protectionism and an uncertn global outlook.
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Beijing Eases Real Estate Policies Stimulates Demand Non Resident Home Purchase Restrictions Lowered New Down Payment Ratios for Property Buyers Interest Rates on Mortgages Gradually Decreased Central Governments Directive to Stabilize Market Chinas Response to Housing led Economic Slowdown