May 6, 2017 / 8:27 AM / 5 months ago

Beijing housing loans fall 20 percent as curbs mount, market cools

Property buildings are seen against the dawn sky in Beijing, China, April 25, 2017. REUTERS/Stringer

BEIJING (Reuters) - Loans for home buyers in Beijing dropped 20 percent in the second to fourth weeks of April compared with the previous three weeks, state media said on Saturday, a sign that a flurry of tough curbs has helped calm the red-hot property market.

Commercial banks in Beijing granted 1.53 billion yuan ($222 million) in loans to home buyers, the official Xinhua news agency said. First-time home buyers accounted for 82 percent of the loans.

The drop follows unprecedented tough restrictions Beijing announced in March to fight soaring property prices, including tighter mortgage checks and a crackdown on home buyers who file for divorce to skirt second-home purchase rules.

Six of China’s largest commercial banks also raised interest rates on housing loans in Beijing for both first and second-time home buyers from May 1.

Similar policies have also cooled home-buying demand in other cities.

The southwestern metropolis of Chongqing launched a six-month crackdown on illegal property sales, Xinhua said.

Home sales in Nancang, capital of Jiangxi province, also slumped 46 percent in April from a year ago, it said.

Reporting by Meng Meng and Benjamin Kang Lim; Editing by Tom Hogue

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below