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China’s stuttering housing market shows signs of life as banks make it easier for first-time buyers to get mortgages approved
- New home sales increased by a monthly 12 per cent in terms of area in November, according to Central Wealth Securities
- It comes after banks were urged to support first-time homebuyers by easing their down-payment ratios and mortgage rates
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China’s beleaguered housing market is showing signs of life after banks made it easier for buyers to get their mortgages approved.
New homes covering a total area of 12 billion square metres (129 billion square feet) in 42 major cities were sold in the first 20 days of November, 12 per cent more than in the same period the previous month, according to Central Wealth Securities, a Chinese broker.
The increase comes after regulators called on lenders to support the market by easing the stringent home loan approvals they had introduced previously to help tame runaway property prices.
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“The recent positive news about the mortgages has boosted some buyers’ confidence, but more are still waiting on the sidelines,” said Cai Hongfei, an analyst with the Central Wealth Securities.
01:46
World’s most indebted developer, China Evergrande Group, buys time to repay more creditors
World’s most indebted developer, China Evergrande Group, buys time to repay more creditors
Chinese authorities at the city, provincial and central government level have taken steps to ease policies to boost the flagging housing market after cash-strapped developers such as China Evergrande and Kaisa Group Holdings began struggling to stave off defaults.
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