Beijing lowers down payment floor, expands tax exemptions for housing sector

The People’s Bank of China cut the minimum down payment for a second home to 40% across the country, down from as much as 70% in Beijing and Shanghai, while the finance ministry expanded a capital-gains tax exemption to sellers who have owned a home for as few as two years, down from five, The Financial Times reported. The moves reverse measures from 2010 meant to curb growing housing prices and discourage “flipping” residences for profit in a market that accounts for roughly 23% of gross domestic product when sales, outfitting and other linked industries are included.