In addition to rising interest rates, an increase in the time required for Chinese home buyers to secure loans from banks promises to put further pressure on the urban property market.
The latest data points to a drop in China’s housing inventories which analysts expect to continue for at least another year on the back of the current de-stockign cycle.
The latest official data points to a sizeable year-on-year rise in Chinese real estate development investment for the first seven months of 2017.
The slated expansion of land supply for residential development purposes across key Chinese cities is expected to dampen urban housing markets over the next five years.
The latest data from Rong 360 points to ongoing gains in interest rates for first home buyer loans across China, as regulators endeavour to stymie any bubbles in urban real estate markets.
Certain banks in Beijing are expected by industry observers to hike rates higher for first home buyer loans, in order to further curb their fraudulent use by speculative investors.
The latest official data points to a plunge in overseas real estate investment by Chinese investors for the first half of 2017.
The People’s Bank of China has flagged strict curbs on lending to real estate speculators and overcapacity industries in its latest report on the Chinese financial sector.
Real estate transactions have continued to decline in major urban centres across China, following the introduction of strict policy measures to control the property market.
A new research report from one of China’s leading think tanks indicates that asset management companies are serving as a conduit for channeling funds from the banking sector to infrastructure and real estate investment. Continue reading “China’s Financial System a Conduit for Channelling Funds to Infrastructure, Real Estate: CASS Report”