Shanghai raises mortgage downpayment requirement for second home buyers

[SHANGHAI] Municipal authorities in Shanghai tightened mortgage downpayment requirement for second home purchases on Friday, in a move to cool an overheating property market that has sparked fear of a bubble forming.

Shanghai also raised the bar for non-residents eligible to buy a home in the city, according to a statement issued by the local government.

Shanghai home prices gained 20.6 per cent in February from a year ago, the second biggest gain in the country after the southern city of Shenzhen, up 56.9 per cent, despite slowing economic growth.

REUTERS