Beijing has witnessed a notable drop in home prices and sales volume over the two years after the city announced property buying curbs on March 17, 2017.

Beijing’s new home sales volume dropped to 50,843 units, compares with 92,281 units for March 18, 2015 to March 17, 2017, while second-hand home sales volume fell by about 50%, the Securities Times reported.

The average selling price for second-hand homes was 59,898 yuan (US$ 8,920) per square meter in February 2019, down 11.3% from the level seen in March 2017, it said.

To cool down the overheating property market, Beijing released a set of property buying curb policies in March 2017. It required buyers to pay 60% as a down payment for their second home, and cut the maximum mortgage term to 25 years from 30 years.

The Beijing property market then entered a low period, said Centaline Property Agency’s chief analyst, Zhang Dawei. Sellers have become more rational and the time needed to close a deal are getting longer, he added.

Anjuke Property Research analyst Li Zhen said the government will continue its efforts to keep land prices stable, as well as home prices and market expectations. He expects Beijing home prices to stay moderate through this year.