China’s real estate market felt a puff of change recently as some cities loosened mortgage policies.
In Guangzhou, the four major banks have reduced the mortgage rate for first-time homebuyers from 5.6 percent to 5.4 percent. In neighboring Shenzhen, the rate has gone from 5.1 to 4.9 percent, the lowest among first-tier cities.
Housing prices in Beijing, Guangzhou, Shanghai and Shenzhen rose by only 0.1 percent in January, when the five-year loan prime rate (LPR) was cut from 4.65 percent to 4.6 percent. Analysts say the rate could go down in the coming months.
In some smaller cities, banks have lowered the minimum down payment from 30 percent to 20 percent.
