Chinese real-estate related lending posted a marked slowdown in growth last year as Beijing sought to cool down overheating urban property markets.
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.
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.
China’s latest Central Economic Work Conference has highlighted long-term home leasing as one of the key measures for reform of the country’s overheating urban real estate markets.
Real estate analysts expect pre-owned home transactions to post a year-on-year drop of more than 50% this year in the Chinese capital.
Various forms of fraudulent property financing have spread like wildfire around China, helping to inflate real estate markets amidst a crackdown by regulators.