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12 month growth
Box Hill
127.02%
Mollymook
82.85%
Brightwaters
79.93%
Cleve
78.13%
Bawley Point
76.2%
Murrays Beach
75.57%
Terranora
70%
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69.38%
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68.32%
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67.09%
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China tightens home lending rules

By Staff Reporter
11 January 2010 | 1 minute read

Amid growing concerns of an impending housing bubble, China is expected to announce its plans to tighten home loan guidance.

The world’s third largest economy will seek to restrict speculative capital – also known as ‘hot money’ arriving from overseas and illegally entering the country’s property market by ramping up property lending supervision.

The State Council of the People’s Republic of China announced that the revised home loan guidance will result in increased monitoring of home loan flows, to counter over-inflated price gains in some cities.

The Home-Loan Guidance listed 11 specific measures which will be undertaken in increasing supply of low-cost houses for low-income families and common residential houses, encouraging reasonable house buying while restraining purchases for speculation and investment, strengthening real estate project loan risk management and market supervision, speeding up construction of housing projects for low-income households, and specifying responsibilities of local governments.

The State Council also reaffirmed the requirement for borrowers to make a 40 per cent deposit for second homes, and said the government authorities will increase monitoring, after some speculation the requirement would increase to 50 per cent.

The State Council’s statement also quashed speculation that a property tax would be introduced for the first time.

The reforms follow a statement by Premier Wen Jiabao in late December last year to tackle “excessive” real-estate gains in some parts of the nation.

China tightens home lending rules
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Do you have an industry update?

top suburbs

12 month growth
Box Hill
127.02%
Mollymook
82.85%
Brightwaters
79.93%
Cleve
78.13%
Bawley Point
76.2%
Murrays Beach
75.57%
Terranora
70%
Crescent Head
69.38%
Park Ridge South
68.32%
Mollymook Beach
67.09%
SEE AREA REPORTS ON SMART PROPERTY INVESTMENT WEBSITE
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Enter your email to receive the latest real estate advice and tools to help you sell.