China megacities ease curbs on home buying, PBoC acts again

30th Sep 2024 07:23

(Sharecast News) - Three Chinese megacities announced the relaxation of home buying rules in the latest round of measures aimed at boosting the country's ailing economy, while the central bank said it would ask lenders to lower mortgage rates.

Guangzhou and Shenzen on Sunday said they would lift all restrictions on home purchases, while Shanghai said it would ease restrictions on housing purchases by non-local buyers and lower the minimum downpayment ratio for first homebuyers to 15% from 20%

The People's Bank of China said it would tell banks to lower mortgage rates for existing home loans before October 31, as part of continuing efforts to support the country's troubled property market.

Commercial banks should cut interest rates on existing mortgages to no less than 30 basis points (bps) below the loan prime rate, the central bank's benchmark rate for mortgages, the PBOC said in a statement.

Reporting by Frank Prenesti for Sharecast.com