Quick Take: Beijing First-Time Homebuyers Snare Three-Quarters of New Mortgages in Second Quarter

(Beijing) — More than 70% of Beijing’s new mortgages in the second quarter were extended to first-time homebuyers, as the country continues weeding out speculative property purchases.

China’s central and city governments have been tightening rules on homebuying, particularly in major cities where speculation and easy credit, alongside rising demand from an expanding urban population, have jacked up prices.

To contain runaway property prices and to enable those lower-income groups to own their first homes, governments have rolled out a series of new regulations in March and April this year. New measures include doubling down-payment rates for buyers who already own at least one property, and revoking sales permits for homes that are seen as “too expensive.”

The Beijing Office of the China Banking Regulatory Commission said Thursday that in June alone, 83% of new mortgages in the capital were extended to first-time homebuyers. This proportion is “roughly above 70%” for the second quarter, which was “higher than before,” the regulator added, without elaborating.

China’s property market continued to cool in July, with sales of new and existing homes slumping amid the government’s campaign to contain property bubbles in a growing number of cities.

Contact reporter Aries Poon (ariespoon@caixin.com)