Tuesday, May 08, 2012

Beijing officials reject 14000 housing applications

In line with efforts to tighten the property market, Beijing’s authorities have turned down applications of more than 14,000 families who looked to buy apartments last year.

Local officials said the rejections were necessary to curb out-of-control housing prices. The city’s housing and urban-rural construction committee noted that ‘speculative demands’ in the property market were squeezed out, as over 90 percent of the city’s approved home purchases were first-time buyers.

Since February, Beijing has barred locally registered families from purchasing a third apartment as well as non-locally registered families from acquiring a second apartment. The move aims to suppress speculative demands which were feared could result in property bubbles, given the soaring prices.

Since the purchasing limit became active, the property sector has noticeably cooled down. This has been backed by higher down payment requirements for second homes, higher lending rates as well as a ban on mortgage loans for buyers of third homes.

Officials added that the central government will remain active in its market tightening efforts to firmly analyse the qualifications of aspiring home buyers and remain a leader in property market regulation in China.

Chinese Premier Wen Jiabao said that the government would not fail in its efforts to control housing prices, which he considered as still “far from falling to a reasonable level”.

View the original article here

May 8, 2012 - PropertyGuru.com.sg

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