Yet more measures to put a squeeze on those wanting to buy homes in Beijing. For those drawing on the public housing fund for loans to buy second-homes, minimum down payment has now shot up to twice original levels from 20 to 40 percent.

Before Monday this week, people who drew on their public housing funds for loans to buy second homes needed to come up with down payment of just 20 percent. Only commercial loan applicants had to pay up to 40 percent. But from Monday onwards, the same 40 percent down payment in full cash applies to all applicants. And even then you still need a clean credit record.

He Yubo, Director of House Loan Center, Beijing Public Housing Fund, said, "All applicants for mortgages for second homes require a 40 percent down payment. For applicants who have bad credit records, we will not give loans at all."

Mr. Li and his wife plan to buy a second apartment at a price of 1.4 million yuan. Down payment will cost as much as 600 thousand yuan.

Mr. Li said, "House prices are so high now. I can only get 800 thousand yuan in loans from my public housing fund. I will have to come up with the rest myself. That means in fact the down payment will be more than 40 percent of the price of the house."

Currently, most houses in Beijing sell for between 1.2 million and 2 million yuan. And that means many buyers will face the same cash-flow problems as Mr Li.

But first-time home buyers, or those who have paid off their first loans in full, will get off a bit easier. If they turn to their public housing fund for loans, they can be still the original 20 percent down payment rate.

But even these perks for first-home buyers may not last much longer. Some banks have said they plan to raise down payment requirements for loans for first home-purchases from 20 to 30 percent.