Read: 217
Beijing, one of the four major cities in China known as tier-one cities, has recently followed suit by easing its homebuying regulations to stimulate the property market. These moves align with the central government's directive encouraging modifications of restrictions on real estate purchases.
The city is introducing several measures med at boosting demand and stabilizing the sector that has been declining since August when new-home prices dropped at their fastest pace in seven years. Under this reform, non-residents will be able to purchase homes located within Beijing’s fifth ring road with a minimum requirement of paying social insurance or personal income tax for three consecutive years instead of the current five-year threshold.
In addition to this easing on residency requirements, Beijing is also slashing minimum down payment ratios: first-time homebuyers are now required to pay at least 15 of the purchase price while second-home buyers will have to prepare a deposit amounting to 20. Furthermore, commercial banks in Beijing are being guided to reduce interest rates on existing mortgage loans towards levels similar to those for new loans. This reform is set to be implemented starting from October 1st when the national holiday begins.
This decision follows three other tier-one cities - Shangh, Guangzhou, and Shenzhen - who have already eased their own homebuying rules in a bid to lift demand within their respective markets. The central government's recent comprehensive package worth potentially up to $530 billion US$5.3 trillion med at stabilizing the property market was announced late last month. This included measures like lowering borrowing costs for mortgage loans and easing down-payment requirements for second homes, which reached an unprecedentedly low level.
The latest actions taken by Beijing are in line with the central government's pledge to stop declining the property market - their strongest commitment so far towards ensuring stability within this crucial sector of China’s economy. The measures highlight the urgency in addressing the housing-led economic slowdown as China faces increasing protectionism and a challenging global outlook.
was originally published on Tuesday, October 1st, by The Business Times newspaper, which provides comprehensive coverage of business news for Singapore and beyond.
Already subscribed? Log In
Subscribe now to gn access to:
Full digital coverage with the online e-paper archive
Personalized content feeds based on your reading preferences
Exclusive articles and content from our premium newsletters and archives
BT Club privileges for special events and activities
Explore subscription options below:
BT Personal Edition - Annual Subscription: S$119.90
BT Personal Edition - Monthly Subscription: S$13.65mo.
Las Vegas Sands' Expansion Project to Inject US$8 Billion
Sim Lian Sets New Record for EC Land Bid in Tampines
URA's Review of Land Policies Amid Changing Economic Landscape
Keppel CEO Emphasizes Competitive Advantage in Data Center Business
Malaysian Pop-up City Echoes China's Housing Crisis
Thrive
Tech in Asia
Asean Business
Global Enterprise
Companies Markets
Banking Finance
Reits Property
Energy Commodities
Telcos, Media Tech
Motoring
Wealth Investing
Personal Finance
Crypto Alternative Assets
Lifestyle Tips
Food Drink Reviews
Travel Inspiration
Watches Guide
E-paper
Video Content
Newsletters
Podcasts
SPH Media's Advertising Solutions
For Any Questions: Contact us, or explore our Privacy Policyprivacy, Terms Conditions, and Cookie Policy to learn more about our services.
This article is reproduced from: https://www.businesstimes.com.sg/property/beijing-follows-major-chinese-cities-ease-homebuying-rules
Please indicate when reprinting from: https://www.669t.com/loan_limit/Beijing_House_Buying_Regulations_Eased.html
Beijing Property Market Stimulus Measures Tier One Cities Homebuying Regulations Relaxation Eased Restrictions on Real Estate Purchases Lowered Down Payment for Second Homes in China Central Governments Comprehensive Housing Package Stabilization Commitment to Chinese Economy