Factbox: Key changes in China's property policy

BEIJING (Reuters) - China announced a flurry of policies to cool its red-hot property sector this year, with the latest moves including higher mortgage rates in tandem with the benchmark interest rate increase on Christmas Day.

Following are key updates on China's real estate policy over the past few years:

POLICY AIMED AT CURBING PRICES(LATE 2009-2010)

Dec 25 - China raised mortgage rates for people borrowing from the housing provident funds by 25 basis points after the central bank increased benchmark interest rates by the same amount.

Dec 22 - China's Commerce Ministry intensified scrutiny of foreign investment in the country's red-hot real estate market.

Dec 7 - China's banking regulator orders lenders again to tighten controls on their loans to property developers.

Oct 20 - China raised mortgage rates 25 basis points, matching the size of the central bank's benchmark interest rate rise.

Oct 19 - China surprises by raising interest rates for the first time in three years.

Oct - Beijing, Shanghai, Shenzhen, Guangzhou and some other key cities issue new rules to limit home buyers to one new apartment.

Sept 29 - China imposes a down payment of at least 30 percent for all mortgages, including those for first home buyers, and orders banks to halt all mortgage lending for third homes.

Aug 6 - Chinese regulators call for stress tests on loans to a wide range of industries, including cement and steel, whose fortunes are closely tied to the property market, official media said.

Aug 5 - Regulators order lenders to test the impact of a fall in house prices of up to 60 percent in key cities and instruct banks to stop extending mortgages to people buying their third homes in four of the cities -- Beijing, Shanghai, Shenzhen and Hangzhou.

July - China plans to start levying property tax in 2012 in a pilot programme that will first be rolled out in several cities, local media said.

Apr 15 - China announces a rise in down payments on second homes to 50 percent from 40 percent. It says banks must charge a minimum mortgage rate on second homes of 1.1 times the benchmark interest rate and it increases down payments on first homes of over 90 square meters to 30 percent from 20 percent.

Mar 23 - China has ordered 78 state companies whose core business is not property to submit plans to divest from the sector within 15 working days.

Dec 9, 2009 - China says individuals must own their homes for five years to be eligible for sales tax exemption, up from the previous minimum of two years. It also says it will increase supply of lower-cost housing.

U-TURN TO SUPPORT PROPERTY MARKET (2008-H2 2009)

Dec 17 - China announces measures to support the property market, including cuts in business and transaction taxes for real estate sales, and policies to make it easier for developers to obtain credit.

Nov 7 - China announces a 4 trillion yuan ($585 billion) two-year stimulus package. A tenth, or 400 billion yuan, is to be used on construction of affordable housing.

Oct 22 - China announces a series of policy changes: lower mortgage rates, reduced down payments, lower transaction taxes.

Since mid-September -- China cuts preferential housing mortgage rate five times, in line with interest rates cuts aimed at boosting the economy.

H2 - Many local governments, including Beijing, Shanghai, Nanjing and Hangzhou, announce measures to support property markets, such as cash subsidies.

MEASURES TO CURB PROPERTY PRICES (2007; 2008-H1)

June 7, 2008 - For the fifth time in 2008, the central bank raises the amount lenders must hold in reserve by a full percentage point, an indication of official alarm over the huge amount of cash flooding into the economy.

Jan 16, 2008 - China raises the proportion of deposits banks must hold in reserve for the 11th time since the start of 2007 to keep a flood of liquidity from entering the economy.

Jan 7, 2008 - China says land acquired from local governments that goes undeveloped for more than one year will be subject to an "idle land charge" of 20 percent of the purchase price.

Dec 11, 2007 - The central bank orders banks to scrutinize mortgage borrowers more closely.

Sept 28, 2007 - The central bank and the China Banking Regulatory Commission say they will ban banks from lending to developers found to be hoarding land. Required down payments for second homes are raised to 40 percent from 30 percent, and requirements for commercial properties increased to 50 percent from 40 percent.

Aug 7, 2007 - China bans foreign investors in Chinese real estate from borrowing offshore.

June 11, 2007 - The Commerce Ministry issues new rules making it harder for foreigners to invest in property, partly by making them obtain land-use rights before developing projects.

March 23, 2007 - The Construction Ministry says it will check whether local governments are implementing measures aimed at cooling the market and errant officials will be held accountable.

January 2007 - The government says it will increase taxes to discourage sales of large homes and will start taxing the appreciation of property values based on actual market prices.

(Reporting by Langi Chiang and Lee Chyen Yee; Editing by Tomasz Janowski)

(See www.reutersrealestate.com for Reuters' global service for real estate professionals)