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China's property loans to individuals see slower growth

Xinhua | Updated: 2018-07-21 15:33
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A saleswoman (center) talks with customers at a real estate sales office in Huai'an, Jiangsu province. [Photo / China News Service]

BEIJING - China's property loans to individual purchasers grew at a slower pace in the second quarter as government restrictions remain in place in major cities, data from the central bank showed.

By the end of last month, financial institutions had lent 23.84 trillion yuan ($3.5 trillion) to individual property buyers, up 18.6 percent year on year, according to a report from the People's Bank of China (PBOC).

The growth was 1.4 percentage points lower than the rate seen at the end of the first quarter.

Outstanding loans for the whole property sector increased 20.4 percent to 35.78 trillion yuan, 0.1 percentage point higher from the end of March.

The data came amid continued government efforts to rein in property speculation, particularly in major cities.

To curb speculation, local governments have passed or expanded restrictions on house purchases and increased the minimum down payment required for mortgages.

In addition, China is working to implement a long-term mechanism for property regulation that ensures supply through multiple sources, provides housing support through multiple channels, and encourages both housing purchases and rentals.

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