BEIJING announced a series of measures Wednesday, including reduced minimum down payment ratios and mortgage interest rates, as part of its latest efforts to stimulate the property market. These new measures took effect from Thursday.

According to a circular issued by several entities, such as the Beijing Municipal Commission of Housing and Urban-Rural Development and the Beijing municipal branch of the People’s Bank of China, the minimum down payment ratio for individual commercial mortgages for homes has been decreased from 30% to 20% for first-home purchases.

For second-home purchases, the minimum down payment has been reduced to 35% for properties within Beijing’s fifth ring road and 30% for those located farther away from downtown.

The lower limits for home loan interest rates have also been adjusted based on the tenor of the benchmark loan prime rate (LPR), as outlined in the circular.

To address the housing needs of families with more than one child, second homes bought by families with a Beijing hukou (residence permit) and two or more children will be treated as first homes in terms of loan policy.

The city is actively promoting home trade-ins by encouraging real estate developers and agents to facilitate the exchange of current homes for new ones, making the process more convenient for residents.

This represents the second set of measures that Beijing has introduced in the past two months to refine the city’s housing policies.

In an April 30 announcement, families with Beijing hukou were allowed to purchase an additional commercial house outside the fifth ring road, even if they already owned two homes in Beijing. Single adults with Beijing hukou and those without one but with a history of paying social insurance or income tax in the city for at least five consecutive years were also permitted to acquire an extra property beyond the fifth ring road, even if they already owned a home in the city.

Several other Chinese cities, including Shanghai, Hangzhou, and Chengdu, have recently made adjustments to their real estate policies, implementing measures to relax purchase curbs and promote the trade-ins of commercial housing units.

(Xinhua)