BEIJING: The transaction volume of second-hand homes in Beijing reached 17,191 in April, the highest in nearly 25 months, according to new data from property agent Centaline.
Zhang Dawei, chief analyst with Centaline, attributed the rise to easing policies on buying and selling the second-hand homes.
In late March, China’s central bank cut the minimum down payment requirement for second home buyers to 40 percent.
Minimum down payments for first and second home purchases using the housing provident fund, which offers urban residents lower rates than those of commercial banks, were also lowered.
Business tax will be exempted on sales of homes purchased more than two years ago, in stead of the previous requirement of five years, announced by the Ministry of Finance.
The property market will be better this year, Zhang said, citing continuous policy stimulus. The demand for improved housing will increase and add energy to the brisk market.
China’s property market took a downturn in 2014 due to weak demand and an excess of unsold homes. The cooling has continued into 2015, with both sales and prices falling and investment slowing.
Since November 2014, the central bank has cut interest rates twice. Banks’ reserve requirement ratio (RRR) was also cut twice.
