First-time home buyers in mainland China may have to pay as much as 50 percent of the purchase price starting this month, according to Nanjing-based newspaper Xinhua Daily.
It said that the China Banking Regulatory Commission (CBRC) will only permit lenders to offer mortgages provided that the condition is satisfied.
However, some banks have already tightened their mortgage requirements.
A survey by China Realty Research Centre revealed that the Nanjing branches of the Agricultural Bank of China, Huaxia Bank and Shanghai Pudong Development Bank now require a down payment of between 40 and 50 percent for mortgages.
Average home prices continued to climb 0.4 percent to 8,773 yuan psm in April, despite government efforts to cool the real estate sector, according to Soufun Holdings, operator of the country’s largest property website.
Soufun added that home prices soared in 77 of China’s 100 major cities in April. However, prices of residential property in Shanghai dropped 8.3 percent to 13,925 yuan psm (HK$16,649.21) in the week to 1 May.
The Shanghai land regulator said earlier that it will increase the land supply for residential projects by 9.1 percent to 1,200 ha this year. Approximately 70 percent of the additional land will be used for affordable housing.
Ronnie Chan, Chairman of Hang Lung Properties, noted that strong demand and the government measures will ensure the stability of the property market.
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