China has announced an expansion of financing for housing projects listed on its “white list” to 4 trillion yuan ($562 billion) as part of its efforts to address challenges in the real estate sector. The announcement was made by Ni Hong, Minister of Housing and Urban-Rural Development, during a press briefing on Thursday.
In addition to this financial boost, the government has introduced plans to redevelop one million urban villages across the country. These initiatives reflect Beijing’s strategy to stabilize the property market, which has seen a downturn following regulatory measures aimed at reducing excessive borrowing. Once a key driver of China’s economic growth, the real estate market has now become a concern for policymakers due to its declining performance.
Earlier in October, the government allowed local authorities to utilize funds from unallocated bond quotas and permitted them to raise debt ceilings. These measures are intended to provide additional support to the property sector.
In late September, officials lowered mortgage rates for existing borrowers by an average of 0.5 percentage points and reduced the minimum down payment for second-home purchases from 25% to 15%. These actions were designed to make home buying more affordable and stimulate demand in the housing market.
The financing initiative for housing projects began in January, with loans reaching 2.23 trillion yuan ($313 billion) by mid-October, according to Xiao Yuanqi, deputy director of the National Financial Regulatory Administration.
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By Proptechbuzz
By Ravi Kumar
