Beijing raises down payments for homebuyers

A realty agent introduces a property project to potential homebuyers at a real estate fair in Beijing. [Photo/VCG]

BEIJING - Beijing authorities on Friday raised down payments for homebuyers in the capital, in an attempt to stabilize the property market.

According to a circular by the Beijing Municipal Commission of Housing and Urban-rural Development, the down payment for first time homebuyers should be no less than 35 percent, while that for second home purchases should be no less than 50 percent. The circular also said that it is necessary to increase the supply of medium- and low-priced housing and medium- and small-sized houses, adding that the ratio of houses less than 90 square meters should be no less than 70 percent in the property market.

It also urged increasing land supply for the development of the so-called "self-using houses", which are sold at a price ceiling imposed by the government to families that qualify.

The circular demanded authorities enhancing supervision over hoarding, price-rigging and other malpractices by developers and brokerages.

The policy goes effective on Friday.

In Beijing, prices of some homes have more than doubled over the past year, prompting glee in some quarters and fears in others.

Sales of resold homes in Beijing are currently rising at 16.5 percent per month.