China's Shenzhen city spurs curbs on home purchases
On Tuesday, China's Shenzhen city dared to step up measures to rein in a red-hot housing market with newly-introduced curbs on borrowings, thus extending nationwide efforts by policy makers for the purpose of cooling prices and also reducing the risk of a market crash.
The downpayment level for second-home purchasers who borrow from the housing provident fund is going to be increased to about 70% from the current level of 30%.
For first-time buyers, the downpayment is going to be raised to 30%from 20%. Moreover, loans won’t be issued for third-home buyers, who only required putting down 30% as downpayment under previous rules.
The changes turn to be effective from November 15, as the notice stresses.
The housing provident fund appears to be a sort of social insurance, enabling Chinese employees to save money toward buying their own homes.
China's tech hub bordering Hong Kong, Shenzhen has long happened to be one of the high-growth home markets. In September, average home prices in the city rose 34.1% year-on-year.