Beijing eases home purchase rules to boost demand

BEIJING (Reuters) – Beijing relaxed restrictions on home buying on Monday, following similar moves by Shanghai and Shenzhen, in a bid to boost demand and prop up the struggling property market.

Beijing will lower the mininum down payment ratio for first-time homebuyers to no less than 15%, while second home buyers would enjoy a minimum down payment of 20%, the city’s Commission of Housing and Urban-Rural Development said in a statement.

It would also ease restrictions on home purchases by non-local buyers, lowering the requirement for continuous social insurance or income tax payments in the city to three years in central areas, down from the previous threshold of five years.