Down payment subsidies aim to lure buyers

Falling home prices on the mainland are forcing some developers to allow first-time home buyers to delay down payments – or subsidise the payments to boost sales. Developers in some cities, including Shenzhen, Guangzhou, Nanjing and Wuhan, have reportedly sold projects requiring just 10 per cent down payment. Even though banks require 30 per cent, developers make up the remaining 20 per cent of the down payment and the buyers do not have to repay the advance for up to three years, according to China Business News. "In some cases, buyers don’t have to pay it back. Developers will just raise selling prices to offset the 20 per cent," said Andy Lee Yiu-chi, head of the Shenzhen branch of Centaline Property Agency.
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