Authorities in Shenzhen, China’s technology hub, are reducing the down payment required from people buying a second home, joining a fray of big cities paring back restrictions in a bid to revive the flagging property market.
They are also scrapping a measure that had restricted the scope of buyers who can enjoy lower down payments.
The easing measures, which include lowering the down payment ratio for second houses to 40 per cent of the value of the property from as much as 80 per cent, will take effect from today, according to a notice from the Shenzhen branch of the People’s Bank of China late on Wednesday.
Shenzhen is the second tier-one city in China to lower the down payment ratios for second houses. In September, Guangzhou lowered the down payment ratio to a minimum of 40 per cent from at least 70 per cent.
