Several cities in Guangdong province have lowered the minimum down payment requirement for the prospective first-home buyers, the state-owned Shanghai Securities News reported.
Zhanjiang, Yangjiang, Zhaoqing and Maoming have trimmed the minimum down payment ratio for starter home buyers to 20 percent from 25 percent, the report said. The deposit requirement for first-time home buyers in Shanwei has also been cut to 25 percent, and those who want to purchase a second home but with outstanding mortgage loans will need to pay 30 percent of the total property price to get a new mortgage loan, it said.
The cuts aim to support the housing needs of residents and to promote the stable and healthy development of the local real estate market, the media outlet said.
This came as China Resources Land (1109) reported a 19 percent year-on-year drop in contracted sales in May to 20.32 billion yuan (HK$23.68 billion), with contracted gross floor area sliding by 32.5 percent.
Attributable contracted sales last month were 13.36 billion yuan with contracted GFA of approximately 670,763 square meters, down 18.7 percent and 34.1 percent year-on-year respectively, the state-controlled developer said in a filing yesterday.
In the first five months of this year, the accumulated contracted sales slumped by 35.5 percent to 81.35 billion yuan and the contracted GFA also tumbled by 42.4 percent to 4.16 million sq m, it said.
