A new report points to a modest uptick in the interest rates for home loans extended by lenders in major cities around China.
The average interest rate for first home loans in China stands at 5.33% in May, for a rise of 2 basis points compared to the previous month, according to the 2021 May China Home Loan Market Report (2021年5月份中国房贷市场报告) released by the Rong360 Big Data Research Institute.
The report surveyed the interest rates for loans extended by 703 bank branches situated in 42 key cities around China.
According to the report the average interest rate for second home loans in China was 5.61%, for an increase of 2 basis points compared to the preceding month, and the four consecutive month of increase since February this year.
Average interest rates for first home loans held steady in Beijing and Shanghai, while in the southern Chinese urban centres of Guangzhou and Shenzhen there was a modest uptick.
In Shenzhen the average first home loan rate rose to 4.98% from 4.95% in April – a level where it had stood since June 2020. In Guangzhou the first home loan rate rose to 5.35%, as compared to 5.26% the previous month.
The slight rises in home loan rates arrive following efforts by regulators to tighten the leash on property markets around China, targeting developers, financial institutions, intermediaries and speculative investors.
