EconoChina

A blog on Chinese economy & society

Posts Tagged ‘mortgage

Further tightening of the Chinese property market

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This current round of tightening seems like the serious stuff. In addition to raising down payments and interest rates for 2nd homes announced earlier, the government is now banning mortgages to 3rd homes in key cities that are deemed overheated. Credit is also denied outright to buyers who have not lived in those cities for more than 1 year, of which tax returns or social security payments are used as proofs.

If this doesn’t work, property tax is also in the pipeline. But China’s property bubble is acute now, and failing to deflate it will only lead to catastrophe in a year or two.

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Written by Cindy Luk

April 18, 2010 at 11:37 pm

Posted in China, Macro

Tagged with , , ,