Beijing property curbs to cool preowned market

The newly released property purchasing policy in Beijing is likely to cause terminations on existing contracts and help cool down the capital's property market, according to industry insiders.

Under the new policy, buyers who own a property in Beijing or have loan records in or outside the capital, will face an increased down payment if they want to move home or buy second properties in the city.

"The regulation will have a more direct and obvious effect on the preowned property market," Ren Qixin, deputy general manager of Yahao Real Estate, was quoted by Beijing Daily as saying. "On Saturday, the second day after the policy took effect, only 224 preowned properties were sold, while during the previous five days, the number remained at about 1,000 every day," Ren said.