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    Home comfort for new buyers

    By Zhang Yue | China Daily | Updated: 2017-11-21 08:06

    The present regulation requires 30 percent of the total price for all properties as down payment from buyers, up from the previous 20 percent.

    "Chinese people are traditionally very persistent in buying houses whatever the difficulty, or potential risks are. This is part of our culture," Zhu said.

    The new regulation also requires banks to scrutinize funding sources of down payments and the authenticity of income certificates.

    Wen Bin, a research fellow with China Minsheng Bank, said a more specific and stricter scrutinizing process is expected to come out on personal down-payment loans on property buying.

    "There will be more detailed requirements for banks to scrutinize funding sources of down payments and the authenticity of income certificates," Wen said.

    The measures came as soaring property prices have made housing affordability a growing problem for policy makers. Since last year, dozens of local governments have passed or expanded restrictions on house purchases and increased minimum down payments.

    Government authorities have constantly reiterated that "houses are built for living in, not speculation".

    At a news conference on the sidelines of the 19th National Congress of the Communist Party of China, Wang Menghui, minister of housing and urban-rural development, said authorities were studying a "long-term mechanism" for real estate regulation and advancing legislative work on developing the rental market.

    He pledged to move faster to "implement a housing system that ensures supply through multiple sources, provide housing support through multiple channels, and encourage both housing purchase and renting".

    China's home prices have shown signs of cooling as home prices faltered in major cities, after authorities implemented a string of measures to contain price hikes.

    A survey by the National Bureau of Statistics in June shows that among the 70 large-and medium-sized cities surveyed, 35 cities have seen a month-on-month price decline or a slower price uptick in May, up from 31 in April, while a total of 29 cities have seen a slower price rise year-on-year in May.

    zhangyue@chinadaily.com.cn

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