Housing Market In Tier-one Cities Ramps Up

The housing market in major cities will usher in an upward trend following the recent relaxation of mortgage lending rules by four tier-one cities. Home sales in Sept and Oct, the traditional peak season, will likely rise as first-home buyers enjoy preferential mortgage rates regardless of their previous credit records, which will restore market sentiment. Homeowners in Beijing are rushing to sell their first house, as authorities give replacing a new home the same treatment as a first home purchase and the down-payment ratio reduces to 40% from 80%. The transaction volume of second-hand houses in Beijing on Sept 2 was about 1,200 units, a rise of more than 100% compared to less than 600 units last Saturday, according to data by Centaline Property. (Source: Securities Times)