China Overheating

11 March 2011 - Confidence in Chongqing's property sector runs high, despite a raft of borrowing and buying restrictions in recent months as China's central government seeks to rein in soaring prices.

Even the introduction of a brand new city property tax failed to cool ardour.In fact, at the Lishui Jingyuan development - a very typical Chinese forest of skyscrapers that towers over the Yangtze River - sales have actually increased.In the show flat, lavishly decorated with magnificent views of the neighbours' bedrooms, sales manager Tang Yang shares her thoughts on how buyers think."People are trying their best to buy now because the government may tighten the market further," she explains.First-time buyers must now make a minimum down-payment of 30% on home purchases.For young couples, families often pool their cash to help them on to the property ladder.Further cooling measures in place now include a ban on banks offering discounts on interest rate payments.The banks have also been ordered to strictly restrict lending on home owners' equity - a typical way to raise a deposit on another mortgaged property.Those buying a second property must find a 60% deposit and pay higher interest charges. Bank loans for a third property are banned.