Saving move from China for the housing sector
China abolished the base interest rate on mortgage loans for real persons’ home purchases.
China has taken one of the most effective steps of recent times to support the struggling real estate sector.
The country has removed the floor on mortgage interest rates and reduced minimum down payment rates for individual home buyers.
The People’s Bank of China reduced the minimum down payment rate to 15 percent for first-time home buyers and 25 percent for second homes.
The latest data has once again revealed the bottleneck in the sector.
New housing prices in 70 cities in China decreased by 0.58 percent, and second-hand housing prices decreased by 0.94 percent.
Both declines reflected the steepest depreciation in the last 10 years.
According to sources familiar with the matter who spoke to Bloomberg, Chinese officials held talks to reduce the excess housing stock. During the meeting, the public plan to purchase millions of houses was discussed.