On July 21, the Qingdao provincial government tightened the macro-control of regulating the real estate market and implemented the most stringent policies of loans on public accumulation funds.

According to the public announcement issued by the Qingdao housing provident fund operation centers on July 20, the lowest ratio of down payment of loans on commercial housing accumulation funds has been lifted from 20% to 30%, and the lowest ratio of down payment of loans on second-hand housing accumulation funds has been lifted from 30% to 40%. This policy resumes the limitations on the ratio of down payments before the policy adjustments in November 2008.

In addition, the control policy also specifies that the second application for accumulation funds must be made after clearing the first loans on accumulation funds five years and the ratio of down payment on the second application for accumulation funds shall not be less than 60%. In addition, the third application for accumulation funds and the application for accumulation funds deposited in different places have been held in suspension.

This policy is the latest control policy after Qingdao adopted the policy of the "14 New Articles" on regulating the real estate market, and has also been called the most stringent policy of loans on public accumulation funds.

According to analysis, this control policy can undermine the investment demand while restraining the local residents’ improvement demand in housing.

By Yu Meng Liu nengzhou

Editor Yu Meng