(Yicai Global) Dec. 1-- Xi’an became the latest Chinese city to issue tighter property market regulations today, as home prices climb along with the nation’s economic rebound from the Covid-19 pandemic.

The capital of Shanxi province, well known to the outside world for its ancient Terracotta Army, hiked the down payment required on a second home purchase to 50 percent from 40 percent for properties up to 144 square meters and to 60 percent from 50 percent for larger ones, the local authorities said in a notice.

The new rules also raised the down payment for residents making purchases with loans from housing provident funds. The city also brought in new requirements for commercial property pre-sales and pre-sale fund management.

The moves are mainly a result of the city’s surging house prices, Zhang Dawei, chief analyst with Centaline Property Agency, told Yicai Global. Xi’an’s population has increased rapidly due to efforts to attract talent, thereby spurring housing demand, Zhang said.

Xi’an’s new housing price index has risen 80 percent over the past five years, ranking it first among 70 large and mid-size Chinese cities, according to the National Bureau of Statistics. The index jumped 0.5 percentage point in October from September and 7.6 percentage points from the same period last year.

Shenzhen, a first-tier city in South China, has recently been at the center of heated discussion over speculation in its real estate market. To curb soaring prices, the city may levy a property surcharge from next year, according to market rumors its tax bureau refuted today.

Editors: Dou Shicong, Tom Litting