Chinese real-estate related lending posted a marked slowdown in growth last year as Beijing sought to cool down overheating urban property markets.
The latest official data points to year-on-year housing price growth in China’s first-tier cities easing for the 15th consecutive month in December 2017, with analysts expecting growth to further ease in 2018 due to property control policies.
An increasing number of cities around China are using human resource policies to loosen recently launched property restrictions, in what one expert claims is an attempt to outfox the central government’s crackdown on the housing market.
Semi-licit forms of lending designed to side step official curbs on financing for home purchases have already made a comeback in China, despite the banking regulator’s crackdown on such practices towards the end of 2017.
China’s land ministry has announced that it will seek to expand the country’s residential land supply by withdrawing from its position as monopoly provider.
The China Banking Regulatory Commission is further intensifying its crackdown on shadow banking activities, specifically targeting illicit flows of funds into the stock and real estate markets.
Chinese cities are rolling back some of the property market control policies launched at the central government’s behest last year, claiming that the measures are intended to shore up their appeal to skilled personnel.
Housing prices in Shenzhen posted a modest fall in the final month of 2017, following the implementation of property market control policies on late 2016 that have induced 15 consecutive months of price declines.
The Chinese government’s launch of real-estate control policies in March has led to sizeable year-on-year plunges in urban home transaction volumes for 2017.
Housing transactions have fallen to a record low in the Chinese capital following the introduction of strict real estate market controls in March of this year.