Guangzhou buyers return properties

The government has recently issued new loan policy requiring a minimum 50 percent down payment on a second home purchase with a mortgage rate no less than 1.1 times the benchmark rate. Soon after this, speculators in Beijing, Shanghai and Guangzhou rushed to get rid of properties.

Mr. Zhang has recently bought a big home in Hainan on 20 percent down payment. However, his lender, China Construction Bank, wouldn't give him a loan because it's his third property

Home buyer Mr. Zhang said, "The bank called me yesterday saying they wouldn't give me loans. I don't have enough cash to pay the house worth 1.6 million."

Over 90 percent of the buyers of this home project own more than one property. Most of them have already paid over 400 thousand yuan for the down payment. The new loan policies leave them facing a dilemma.

Home buyer Mrs. Shen said, "We have already handed over down payment but can't get loans from banks. And now we can't afford the homes."

According to official statistics, on April 19th, there were 16 cases of housing refunds, mostly luxury homes. Local housing agencies said speculators are now in rush to get rid of their properties.

Yang Huijua, district manager of Centaline Property,Guangzhou, said, "Many owners are urging us to sell their properties more quickly. And they offer a 10 percent discount."

Official statistics also show prices of new housing continues to drop due to the new loan policy. Experts suggest that will be a trend.