The latest official data for September points to a cooling of China’s housing markets, with month-on-month price declines for first-tier cities and continued easing of price growth in second and third-tier urban centres.
The central government has signalled its strong commitment to expanding the residential rental market in China’s urban centres at the the 19th National Congress of the Chinese Communist Party.
The scope and intensity of housing sales restrictions in China have continued to increase, as municipal governments endeavour to cool down overheating real estate markets.
Borrowing by China’s household sector as well as shadow banking business saw a sharp increase in September, despite Beijing’s ongoing deleveraging campaign.
Multiple banks in the southern Chinese manufacturing hub of Shenzhen have suspended the provision of consumer loans due to concerns over their illicit use for speculative investment in the real estate market.
The China Banking Regulatory Commission is planning a crackdown on the illicit use of consumer loans to invest in the property market.
The latest data from Rong 360 indicates that China’s average first home loan rate lifted to 5.22% in September, for its ninth increase since the start of 2017.
Chinese investors continue to account for the vast preponderance of foreign acquisitions of new homes in the most populous part of Australia, despite the tightening of capital controls by Beijing.
Property market control policies are expected to further intensify around China, with an increasing number of cities implementing sales restrictions on local housing markets.
A seminal figure in the development of China’s real estate sector says it will remain the key driver of the national economy for at least the next several years.