The Chinese Government is concerned about the rapid growth in housing prices, reports Bloomberg. The World Bank believes that it can lead to overheating of the economy. In August the value of property in 70 Chinese cities rose by 9.3% compared to last year. Number of property transactions in July rose by 15% - to 52.1 billion dollars.
To curb rising property prices, the government decided to tighten the conditions for granting mortgage loans. Now when you purchase first apartment buyers will have to make at least 30% of the cost of housing, and the second buyers of apartments - half the cost of housing, rather than 40% as previously.
This year, according to the National Bureau of Statistics, its biggest rise in two years property prices have shown in February - 10,7%.