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New property restrictions announced

China’s regulators announced on Wednesday a series of new policies designed to calm the country’s rising property prices, Reuters reported. Local governments are now mandated to set price controls tied to 2011 local income levels for property. On the retail banking side, lending institutions are now required to demand down payment of at least 60% for second home purchases, up from 50% currently. The report also reiterated recently introduced policies, including a bar on new home purchases for consumers who already own two houses, and mortgages set at least 110% of the benchmark rate for second home buyers. Noticeably absent was any mention of a widely anticipated property tax, though many property analysts felt the measures were surprisingly tough.

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