China has raised mortgage downpayments on second homes to 50% from the current 40% in a bid to rein in runaway price growth, state media reported. The State Council made the announcement after the National Bureau of Statistics said March property prices soared 11.7%, the biggest year-on-year increase since the stats bureau expanded its coverage to 70 cities five years ago. The State Council also said the minimum downpayment of 30% for a home bigger than 90 square meters. As fears of asset bubbles grow, Liu Mingkang, chairman of the banking regulator, said the banking system has many ways to deal with risks from the property sector.
Categories