MILAN, Jan 5 (Class Editori) — China’s central bank, in an effort to boost the country’s real estate market, will continue to allow local Governments to lower or remove the minimum threshold of mortgage rates for first-time homebuyers if local home prices record persistent declines.
The People’s Bank of China (PBoC) has specified that cities where house prices record declines on a monthly and annual basis for three consecutive months may lower or remove the minimum threshold of mortgage rates for first-time home buyers.
Local Governments should release house price assessments to determine whether to continue the policy, the central bank pointed out. Cities that subsequently record house price increases for three consecutive months will have to implement the nationwide mortgage rate policy, the PBoC explained.
The PBoC introduced a similar policy in September to stimulate demand for homes in the market. The current extension of the easing policy shows Beijing’s continued efforts to halt the prolonged real estate slump that has weighed on the economy.
Due the prolonged real estate slump and the severe restrictions caused by Covid-19, China’s economy is set to miss its growth target of about 5.5% in 2022, with economists expecting an expansion of less than 3%. Also according to economists, further efforts will be made in 2023 to stabilize the real estate market.
(Source:Class Editori)
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