Quoted from
China Daily:
"The cabinet has decided to significantly tighten the rules regarding mortgage down payments and housing transactions, in a bid to cool down the country's over-heated property sector.
New residential buildings are erected along Maoming Road in Shanghai, which is on the list of five cities that recorded the biggest drop in housing prices last month. [Shanghai Daily]
According to a statement issued by the State Council yesterday, as of June 1 the minimum down payment for a new apartment larger than 90 square metres will be raised from 20 per cent to 30 per cent.
The ratio for an apartment smaller than 90 square metres will remain unchanged at 20 per cent, to cater to "the needs of middle- and low-income groups," the statement said.
In another important move, a transaction tax will be imposed on people attempting to resell their properties within five years of purchase. The current period is two years. The tax rate will stay unchanged at 5.5 per cent of the sale value.
The move, also effective June 1, is aimed at "curbing speculative and investment-oriented housing demand," according to the statement."
# posted by Birdie @ 11:59 PM
