Developers mourn missed opportunity

Real estate developers are mourning the missed opportunity of not acquiring more land as the market shows signs of recovery amid recent easing on lending rules and purchase restriction, said the China Business News on Wednesday.

The easing of down payments for second homes marks a turning point in the nation's restrictive home purchasing policies, as Nanjing, capital of Jiangsu province, saw a 36 percent year-on-year increase in daily housing turnovers in the first three days of October to 371, with the city's inventory shrinking by about 1,000 to 52,000.

Chinese citizens who wish to buy a second home can enjoy the same 30 percent down payment required of first-time home buyers if they have fully repaid their mortgage loans, according to a joint announcement by the People's Bank of China, the central bank, and the China Banking Regulatory Commission on Sept 30.

Prior to the announcement, second home buyers were required to place at least 60 percent down payment. "Land price in the fourth quarter will rise, leaving small-and medium-sized developers fewer opportunities and higher risks in land acquisition," reported the News quoting industry insiders.

The News added that the real estate market diverges between the 41 Chinese cities that have lifted home purchase restrictions and four first-tier ones that still impose the limit, as Beijing, Shanghai and Guangzhou saw a 30 percent year-on-year decrease in housing turnover, and Shenzhen, 18 percent.

The new rule is believed to shore up a sagging property market that had extended a cooling trend in August as more cities reported month-on-month price drops. Government data showed out of 70 major Chinese cities, new homes in 68 saw month-on-month price declines in August, compared with 64 in July.