Chinese government officials announced on Sunday that buyers of second homes will be required to make a larger down payment. Buyers will need 40% of the purchase price, in an effort to keep real estate prices lower.
The State Council is taking the action in hopes to increase the supply of low-income housing and restrain property speculation. “With the recovery of the real-estate market, such problems as excessively rising house prices have recently emerged in some cities, which call for great attention,” officials said in a statement.
Source: MarketWatch (01/10/2010)