GUANGZHOU is expanding its mortgage facilities for flat buyers with the scheduled release in October of new rulings designed to boost the development of the real estate market.
The regulations will be introduced to coincide with the opening of the city's real estate trade centre, according to Li Weijie, director of the Guangzhou Lands Bureau.
'Some banks in Hong Kong are already giving mortgages. But we need to expand on this,' he said.
'Mortgages for 'commodity' flats are needed. This will follow the Construction Bank of China giving mortgages to low-cost housing.' Commodity flats did not come under the low-cost category.
Mr Li said two banks were interested in giving the mortgages, which could increase property transaction volumes in Guangzhou.
Low-cost housing accounted for about 40 per cent of the city's residential market, while commodity flats made up the remainer.
Mr Li said that restrictions for pre-sale flats would be relaxed.