Local Governments Tighten Home Purchasing Rules to Prevent Property Bubble

(Beijing) – Several large cities have started tightening rules on those buying a second home, signaling a previous stimulus has come to an end as local governments try to rein in real estate prices.

The government of Nanjing, capital of the eastern province of Jiangsu, said it will increase the down payment threshold for homebuyers who already own property in the city, starting August 12. Under the new rule, the initial deposit will be raised from 45 to 50 percent of the value of the house if the buyer had pending home loans.