Home Loan Rates Rise in China’s Hot Spot Urban Centres
Hot spot housing markets around China are seeing ongoing gains in home loan rates at the behest of concerned regulators.
The average national first home loan rate was 5.423% in June according to data from Rong360, for an on-month rise of 0.14%, while the pre-owned home loan rate was 5.75%, for an on-month rise of 0.01%.
Zeng Gang (曾刚), vice-chair of the National Institute of Finance and Development, said that pressure from local authorities was a key factor behind the increase.
“Further strengthening of financial controls for real estate, and targeted controls for those cities that have recently seen comparatively rapid rises in housing prices, are the key factors behind the home loan rate rises in certain cities,” said Zeng.
“In recent years the leverage ratio of China’s household sector has risen quite rapidly, and the personal home loan operations of banks in certain hot spot areas are tending towards caution, which is helping to more effectively prevent risk,” said Dong Ximiao (董希淼), vice-head of Renmin University’s Chongyang Financial Institute to state-owned media.