China Moves to Cool Housing Market

China is tightening limits on mortgage lending in hopes of cooling a market that has pushed housing prices beyond the reach of most Chinese.The government said Thursday that a 30-percent down payment will be required on first-home purchases, up from 20 percent. Purchases of second homes will require 50 percent down, up from 40 percent. Loans for purchases of third homes are banned.In addition, the government said it will introduce real estate taxes on a trial basis in some major cities, likely including Beijing, Shanghai, Shenzhen and Chongqing.


The combined actions are an attempt to curb the run-up in real estate values. Housing prices in 70 major Chinese cities were up by more than 9 percent in August over the year before.That has kept many from buying homes in a country where the annual per capita income is about $4,500.