China is likely to introduce more policy changes this year to cool its real estate market, according to Deloitte Touche Tohmatsu.
Property prices in China rose 10.7% in February, the steepest gain in almost two years, even after banks raised mortgage rates. The Chinese government has already introduced legislation to quell further price increases. The Ministry of Land and Resources said earlier this month that buyers must pay a 50 % down payment on land acquisitions within a month of signing the contract, and put a deposit of 20% of the minimum price for the land when taking part in auctions.
“We expect more policy changes in 2010 as property prices remain high,” Richard Ho, who heads the Deloitte China National Real Estate Industry Practice, said in an e-mailed statement.