Average first home loan rates in China posted their first decline for 2018 in the month of December, as Beijing maintained tight property and credit controls throughout the course of the year.
Rong360 released its home loan rates report for December 2018 on 10 January, which pointed to an average first home loan rate in China of 5.68% in December, equal to 1.159 times the benchmark rate, for a decline of 0.53% compared to November and the first decline of the year.
Out of the 35 cities monitored by Rong360 Shanghai was host to the lowest first home loan rates at 5.09%, while Wuhan had the highest at 6.24%.
Aside from Shanghai the ten cities with the lowest first home loan rates included Xiaman (5.36%), Dalian (5.44%), Beijing (5.45%), Fuzhou (5.46%), Urumqi (5.47%), Taiyuan (5.53%), Kunming (5.54%), Shenzhen (5.55%) and Guangzhou (5.57%).
Out of 533 banks in 35 Chinese cities, 8 banks, or 1.5% of the total, raised their first home loan rates in December, for a decline of 15 banks compared to November, while 54 banks, or 10.13%, dialled back their rates, for a decline of 39 banks compared to November. 470 banks, or 88.18% of the total, kept their rates steady compared to the preceding month.
Rong360 analyst Li Weili (李唯一), said to the Changjiang Times that following an increase in housing supply via other sources the demand for domiciles has gradually eased, and home loan demand is on track to see a temporary lull in explosive growth.
Amidst no change in the overall environment for funds, capital costs are likely to retain an upward trajectory.