BEIJING: Beijing and Shanghai relaxed home purchase restrictions on Thursday (Dec 14), including by lowering the minimum deposit ratio for first and second homes, suggesting renewed efforts by Chinese authorities to revive the sluggish housing market.
The world’s second-biggest economy has struggled to get back on its feet this year after reopening from COVID curbs, largely because its massive property sector has stumbled from one crisis to another in a major blow to consumer and investor confidence.
Despite a slew of support for homebuyers over recent months, the country’s property market has failed to stage robust rebound with property sales, investment and home prices extending declines.
Beijing authorities said in a statement they would lower the minimum deposit ratio for first homes to 30 per cent from 35-40 per cent previously, effective from Thursday.
The move is to “strengthen credit support to home purchases and to better meet the rigid and improved household housing demand,” read the statement.
The financial hub of Shanghai said on Thursday it will lower the minimum deposit ratio for first homes to 30 per cent from 35 per cent previously from Dec 15, state media reported, citing the Shanghai housing department.
Fitch Ratings also said on Wednesday local government debt might continue to migrate gradually onto the sovereign balance sheet because of pressures from the country’s property market slowdown.
China top leaders pledged at an agenda-setting meeting this week to speed up the establishment of a new model of property development and to quicken the construction of affordable housing. Source: Reuters/ec
