Pre-owned home deals slump by 70% in Beijing

Beijing's mandatory provident fund center confirmed in a statement on Sunday that down payments for second-home buyers will be increased by 10 percent, but the mortgage rate will remain unchanged at 1.1 times the benchmark interest rate.

According to a report in Beijing Business Today on Sunday, the Beijing operations office of the People's Bank of China also issued a notice to commercial banks in the city, requiring the down payment for second-home buyers to be 70 percent, adding loans to third-home buyers are being prohibited.

Industry analysts said that considering the central government's determination to rein in the property market, commercial mortgage rates for second-home buyers are unlikely to be lowered more than the current 1.1 times the benchmark rate.

"As second-home buyers do not account for a big proportion of the commercial bank market, lenders are unlikely to feel any major impact," said Lian Ping, chief economist with Bank of Communications.