House Purchase Rules Relaxed In Jiangsu Province

Yangzhou City in Jiangsu province has introduced new measures to stimulate demand in the real estate market, according to the Securities Daily Network. According to the paper, the local government will lower the mortgage rate for first time buyers, offering a 50bp discount to the loan prime rate compared to a 20bp discount previously. This will lower mortgage interest rates to 3.8% from 4.1%. Additionally, there will also be a relaxation of restrictions on residents selling their second property to buy newly built apartments, which was previously only allowed after 3 years of ownership. Citing analysts, the paper said the measures show cities like like Yangzhou are fully utilising the mortgage pricing powers given to them by the central bank to spur demand in the market.