China Vanke has said its property sales rose just 3% in December from a year earlier to $805 million, down sharply from November’s 47% rise. This because Beijing has begun tightening its policies on home purchases in the face of soaring prices.
At the beginning of 2009, Beijing took a series of market-boosting measures, including tax breaks, smaller downpayment requirements and lower loan rates for first-time buyers.
Online Wall Street Journal said the government had been tightening its policies for property developers and apartment buyers in recent weeks after property prices hit record highs in major cities, heightening government concerns about the buildup of long-term inflationary pressure.
The tightening moves include the introduction of a nationwide minimum downpayment on land, and the withdrawal of a favorable business tax policy on the purchase of second homes.