China’s Mortgage and Property Development Loans Decline
BEIJING (Reuters) – China’s mortgage loans experienced a further decline at the end of June, while property development loans increased, according to central bank data released on Friday. Authorities are working to stabilize the struggling real estate sector.
At the end of June, the outstanding individual mortgage loans in China totaled 37.79 trillion yuan ($5.33 trillion), reflecting a 2.1% decrease from the previous year, as reported by the People’s Bank of China (PBOC). This decline contrasts with a 1.9% decrease recorded at the end of March.
In contrast, outstanding property development loans, which are loans aimed at developers, reached 13.77 trillion yuan at the end of June, marking a 2.8% increase from the year prior. This represents a notable uptick from a 1.7% rise noted at the end of March.
Overall, China’s property loans summed to 53.1 trillion yuan by the end of June, down 1% compared to the earlier year, whereas at the end of March, these loans decreased by 1.1% year-on-year.
To spur economic growth, the Chinese government has introduced several measures aimed at supporting the property sector. In May, the PBOC initiated a 300 billion yuan relending program, which is set to facilitate up to 500 billion yuan in funding for state-owned enterprises to purchase unsold apartments and convert them into affordable housing.
($1 = 7.0888 Chinese yuan renminbi)
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