7 Chinese cities just cracked down on residential speculators

Local Chinese governments just made it tougher for millions of citizens to buy homes, in an attempt to stop excessive speculation.Governments in seven Chinese cities have just introduced measures raising down-payment requirements for first and second homes, and ruled some potential buyers ineligible, according to Bloomberg.

Sichuan’s provincial capital Chengdu and Henan’s provincial capital Zhengzhou have banned third home ownership in some areas. Wuxi, a southern city close to Shanghai, raised down-payment requirements for second homes to a minimum of 40 percent from 30 percent previously, according to Bloomberg.

And China’s capital city Beijing has increased down payments for first-time purchasers to a minimum of 35 percent of the selling price. In nearby Tianjin non-locals are now banned from buying second properties.

And Shandong’s provincial capital, Jinan, also increased down-payment requirements, according to the Xinhua News Agency. [Bloomberg] –Christopher Cameron