As people keep their eye on changes in the housing market, the Nanjing branch of China Merchants Bank is reducing the discount on its first-time buyers' loan rate from 30 percent to 20 percent, from Monday.

Credit card holders can still get a 30 per cent discount but other customers can only enjoy a 20 percent discount. Meanwhile the loan rate for second homes is to rise by ten percent.

As well as Nanjing, Shanghai and Guangzhou are also to tighten their lending policies. It seems an inevitable trend for banks to gradually raise their loan rates.

The government is also likely to end its favorable policies towards property and business income taxes.

Many potential buyers are hurrying to choose homes, in the hope of still enjoying the policies. Mrs. Ren in Nanjing has just signed a contract with developers, to buy an apartment for 1.8 million yuan. She can save nearly 30 thousand yuan in taxes at the moment.

Mrs. Ren, Nanjing Resident, said, "It does make a difference, I can save some money."

Che Shying, Staff of Sunco Real Estate Co., Ltd, said, "There may be a rush in December, because many people want to take advantage of the benefits. I suggest buyers sign contracts and transfer ownerships before mid December, because the government promises to issue Property Title Certificate within ten working days. Therefore all the procedures can be done within December, so buyers can enjoy favorable policies before December 31st."

Other major cities around the country also expect a surge in house sales for the rest of this year.