Saturday, September 2, 2023 – 8:43 PM
BEIJING, September 2, WAM/ The cities of “Beijing” and “Shanghai” relaxed mortgage rules with the aim of stabilizing the real estate sector, just two days after the cities of Guangzhou and Shenzhen announced similar amendments.
Chinese experts said in this regard that the measures taken by the first-tier cities in China, including the capital, Beijing, are likely to be followed by other regions, which is conducive to the stable development of the real estate market.
Yesterday, real estate and financial authorities in Beijing and Shanghai announced new rules that will allow homebuyers to enjoy preferential treatment for their first home purchase, regardless of their previous credit history.
The other two cities, Guangzhou and Shenzhen in southern China’s Guangdong Province, made similar adjustments earlier this week, and experts predict that China’s so-called “second-tier cities” are likely to adopt similar rules.
Today, eastern China’s Anhui Province announced a similar easing of mortgage procedures.
And local media reported that the cities of Suzhou in east China’s Jiangsu Province and Nanning in southern China’s Guangxi Zhuang Autonomous Region also announced today that they follow the rules of soft mortgages. These measures, according to experts, aim to reduce the cost of buying homes and work to boost demand.
The effects of these decisions are expected to be measurable as early as September and October, which is usually the peak season for real estate transactions in China. On Thursday, China’s top financial regulator issued a notice to reduce down payments for both first- and second-time home buyers, while continuing to reduce interest rates on existing mortgages.
According to the notice issued by the central bank and the National Administration of Financial Regulation of China, the lowest down payment for first-time home buyers will be 20 percent, while it will be 30 percent for second-time buyers.
WAM Correspondent – China
2023-09-02 16:43:00
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