Many Chinese provinces and cities have optimized housing finance policies to support the property sector and promote home sales.
On May 17, Chinese authorities unveiled a slew of highly anticipated policies aimed at bolstering the property market.
These include lowering the minimum down payment ratios for individuals' commercial housing mortgages to 15 percent for first-home purchases and 25 percent for second-home purchases; and the abolishment of the floor level of commercial mortgage rates for first and second homes across the country.
According to preliminary data, 19 cities in Guangdong province, as well as provinces such as Hubei, Yunnan, Shanxi, Gansu, Hebei, Shaanxi, Ningxia, Guangxi, and Chongqing Municipality, have announced the removal of lower limits on interest rates for first and second home loans.
Provincial capitals like Fuzhou and Changsha, along with other cities such as Quanzhou, Nanping, and Wuhu, have also followed suit in implementing the policies.
Hubei Province has taken steps to meet the improved housing needs of residents by removing purchase restrictions. It has reduced the minimum down payment ratio for first homes from not less than 20 percent to a minimum of 15 percent, and for second homes from not less than 30 percent to a minimum of 25 percent。
Similar adjustments have been made by provinces and cities including Guangxi, Ningxia, Gansu, Shaanxi, Shanxi, Chongqing, and Hefei.
Moreover, provinces and cities have announced reductions in provident fund loan interest rates, further facilitating access to housing finance for potential homebuyers.
Chinese provinces, cities optimize housing finance policies to boost property sector
