Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (244580)	4/17/2010 3:01:10 PM
From: Haim R. Branisteanu	Read Replies (1) \| Respond to of 306849

UPDATE China To Curb Overly Fast Property Price Growth SHANGHAI (Dow Jones)--China's State Council said Saturday it will resolutely curb the overly fast property price growth in some cities by further tightening speculative investments, including allowing banks to stop issuing mortgages to home buyers who already own two or more properties. In the most sweeping notice on tightening the country's property policies recently, and an indication that Beijing is increasingly worried about run-away property prices, the State Council, the Cabinet, said local governments can take temporary measures to limit the number of property purchases each investor makes within a certain period. China's central government already launched fresh tightening measures over the property market Thursday--raising minimum down payment levels and mortgage rates for certain home buyers, after latest data showed property prices in 70 of China's large and medium-sized cities rose 11.7% in March from a year earlier, the fastest pace since China began releasing the data in July 2005. But the government's notice Saturday appears also aimed at encouraging local governments and banks to even more strictly control credits for speculative property transactions. "Overly high housing prices and overly fast price growth has increased the difficulty for people to seek residence through markets," the State Council said in the notice. "It also increased financial risks, which aren't beneficial to balanced social development." "Each region's, governmental departments should fully realize the threat of overly fast property price growth and seriously implement the central government's real estate market policy adjustments," it said. The State Council said banks should "greatly increase" minimum down payment and mortgage rates for those buying third homes or beyond, if a mortgage is to be issued at all, without giving concrete targets. It also said banks should stop issuing mortgages to non-residents who also haven't paid local taxes or welfare benefit fees for more than a year. The State Council reiterated the rules unveiled Thursday that banks should raise the minimum down payment for second-home purchases to 50% from 40%, while requiring mortgage rates to be no less than 1.1 times benchmark rates. The State Council also set a 30% minimum down payment for purchases of first homes that are larger than 90 square meters. The government also reiterated that local governments should increase land supply for residential housing development and expedite construction of government subsidized housings. The State Council also said the government will strictly monitor land purchases and fund raising of developers to prevent speculation on land prices. Local governments need to file a report to the central government on audits of local developers by end of June, the State Council said. -By Joy C. Shaw, Dow Jones Newswires; (86-21) 6120-1200;