Real Estate Lending Eased in 2017

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Chinese real-estate related lending posted a marked slowdown in growth last year as Beijing sought to cool down overheating urban property markets.

Outstanding loans in relation to real estate totalled 32.2 trillion yuan (USD$5.03 trillion) as of the end of 2017, for year-on-year growth of 20.9%, and a deceleration of 6.1 percentage points compared to 2016, according to the latest data from the People’s Bank of China.

The full year increase in outstanding real-estate related loans was 5.6 trillion yuan, for a year-on-year decline of 108.7 billion yuan.

Outstanding individual mortgage loans were 21.9 trillion yuan in total, accounting for over 68% of total outstanding real-estate related lending.

Individual mortgage loans posted year-on-year growth of 22.2%, for a deceleration of 14.5 percentage points compared to the end of 2016.

As of the end of 2017 total outstanding RMB lending by China’s financial institutions was 120.1 trillion yuan, for year-on-year growth of 12.7%, and a deceleration of 0.8 percentage points.

The full year outstanding loan increase was 13.5 trillion yuan, for a year-on-year expansion of 878.2 billion yuan.

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