First-time homebuyers and developers on the mainland have started to see more enthusiasm from banks about issuing loans, with lenders flush with cash after the central bank cut the reserve ratio requirement for the first time in three years.
Lenders have begun asking developers such as Agile Property Holdings and Longfor Properties to draw down loans, according to Alan Jin, head of regional property research at Mizuho Securities Asia.
In cities such as Beijing, Shanghai, Guangzhou and Xiamen, banks have reportedly slightly eased mortgage lending requirements.
However, analysts say the modest easing in lending limits will not significantly improve the property market - though it is a sign that credit conditions will not get worse. Sales have fallen by half, prices are falling and steeper drops are forecast next year.
Shares of mainland property developers surged on the back of the positive news, with Agile Property up 9.38 per cent to HK$6.88, China Resources Land gaining 9.06 per cent to HK$13. Evergrande Real Estate rose 7.96 per cent to HK$3.12 while China Overseas Land gained 5.45 per cent to HK$14.32.
The National Development and Reform Commission, the top economic planning body, said measures to curb speculation and regulate home prices to keep them at reasonable levels would stay in place next year.