China Eases Real Estate Rules: Lower Down Payments for Beijing Homes

China has again introduced measures to ease housing purchase regulations to stimulate its stagnant real estate market.

Reuters reported that Beijing announced it would lower the down payment ratio for first-time homebuyers from 35-40% of the house price to 30%.

In six urban districts, authorities have lowered the down payment ratio for second home purchases to 50%; non-urban districts have reduced it to 40%.

In September, Chinese authorities decided to offer the same preferential benefits to those who have previously purchased a house but are currently without one, as they would to first-time homebuyers. First-time homebuyers see a significant reduction in the down payment ratio. They also receive preferential benefits in terms of mortgage interest rates.

Guangzhou and Shenzhen, among China’s first-tier cities (Beijing, Shanghai, Guangzhou, Shenzhen), have significantly lowered the down payment ratio for second-home buyers.

China’s real estate market has stagnated since the authorities launched stringent regulations to curb speculation in the second half of 2020.

By. Seong Wook Jung