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Beijing Raises Home Down Payment in Bid to Cool Property Market

  • Vows to crack down on illegal activies in real estate sector
  • Trial planned to limit prices of projects to curb surge

China’s capital city told home buyers to put more money as down payment as part of a wider effort by the world’s second-biggest economy to rein in prices and cool the property market.

The Beijing administration raised the down payment for first-time purchasers to a minimum 35 percent of the price, from the 30 percent earlier, while it increased it to at least 50 percent for second-time buyers, according to a statement on the city government’s website. The decision by Beijing came a day after similar measures by Hangzhou, which also capped land auction prices to give a maximum of 150 percent premium.