Shenzhen raises deposit rule to 70pc
Move applies to buyers of second properties as city adds to measures to cool housing market
Buyers of second homes in Shenzhen must pay a deposit of 70 per cent from tomorrow - raised from 60 per cent - as part of the city's efforts to cool the market. But analysts said the move would have only limited impact in the short term.
Shenzhen becomes the second mainland city to raise deposit requirements after Beijing did the same in April. The down payment remains 30 per cent for first-time home buyers. Those buying their third homes will still be denied bank loans.
"Home prices in first-tier cities have been rising fast this year," the Shenzhen branch of the People's Bank of China said in a statement announcing the new policy.
Prices of new properties in Shenzhen rose 20.1 per cent in September from a year earlier and 1.4 per cent from August. In Beijing, prices have been moving at the fastest clip among all major cities, rising 20.6 per cent in September.
The rapid increases in prices prompted the two cities to roll out new tightening measures. Beijing has also announced a plan to increase land supply for end users.
"I personally think the policy will not have much of an impact," said Lin Jianhui, a research director in Shenzhen with China Index Academy, the mainland's largest private real estate researcher.