First Home Loan Rates in China Rise for 18th Consecutive Month

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Home loan rates around China have seen continuous gains over the past year and a half.

The latest data from Rong360 indicates that the average first-home loan rate for June was 5.64%, or 1.151 times the benchmark rate, for a rise of 0.71% compared to May and a year-on-year increase of 15.34% compared to the reading of 4.89% for June 2017.

June marked the 18th consecutive month of increase in China’s nationwide average first home loan rate since January 2017.

Out of 35 cities monitored Shanghai was still host to the lowest average first home loan rate at 5.16%, while Harbin, Zhengzhou, Wuchan and Dongguan have all seen rates breakthrough the 6% threshold.

The average rate in Beijing was 5.47% in June, while in Guangzhou it was 5.57% and in Sheznhen 5.51%, for modest gains compared to the preceding month.

Rong360 analysts expect the trend of overall gains in  home loan rates to continue, and a stabilisation of the gap between rates for first home and pre-owned home loans after some further narrowing.

According to them the property market controls launched by municipal governments around China will further expand and intensify in the second half.

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