Chinese lenders have raised rates for first homebuyer loans continuously since the start of the year, as policymakers compel the banking sector to heavily curb issuance of new housing loans.
Rong360’s latest “2017 April China Home Loan Market Report” indicates that the nationwide average rate for first homebuyer loans is now 4.52%, for a 0.67% gain on the previous month, and a 4.49% year-on-year rise.
The report seeks to provide a comprehensive picture of home lending in China, monitoring a total of 533 banks in 35 cities around the country.
According to Rong360 analyst Li Weiyi , the rise in average nationwide rates commenced in January and has now continued for four consecutive months at the behest of government policy.
In addition to state directives, monetary policy is also having an impact on home lending, with capital scarcity compelling banks to cap the cost of home loans and make adjustments to where they direct their funds.
While the measures will put more pressure on those buyers lying on the rigid demand side of the equation, it will also raise costs for speculative investors and drive many out of the market.
One analyst said to China Securities Journal that this means the property development sector has reached a turning point, with banks seeking to severely curb loan issuance in future.
Real estate loans currently account for a very large percentage of lending by China’s listed banks, and in some cases comprise over 50% of the total.