China said to be readying moves to counter housing market slump

Beijing

CHINA is preparing measures to counter a housing market slump and will roll them out if the economy needs support, people with knowledge of the matter said on Wednesday.

The government could reduce downpayment requirements for second-home purchases, the people said, declining to be identified as the information isn't public.

Another possible step would be to let homeowners sell properties without paying sales tax after two years, down from five years.

The contingency plans come amid signs of a deepening decline in the real estate industry in the world's second-largest economy. China's new-home prices posted a record year-on-year decline in January, according to Bloomberg Intelligence analysi…