Cities fine tune property market policy

Around 40 cities have fine tuned policies to meet the rigid demand of home buyers, although restricted property-purchasing and a credit squeeze policy have been strictly enforced across the country, reported Chinanews.com on Wednesday.

According to the report, Hu Jinghui, vice president of BA Consulting and 5i5j Group, noted that, based on the current direction of macroeconomic regulation and control, fine tuning policies will enable a sustained release of rigid demand in the second half of this year. The policies, such as lower down payments or concessionary loan interest rates and tax credits, aim to encourage first-time home buyers..

People who want to improve housing conditions are also of rigid demand, as well as first-time home buyers, Hu added. Releasing their demand will help to relieve the current sluggish property market.

In the past two days of this week, in order to promote demand, Chongqing municipality lift the public housing fund loan ceiling from 400,000 yuan to 800,000 yuan for a household and Hunan province lowered the down payment rate and introduced tax breaks for first-time home buyers, according to the report.