China's $41bn lending facility to clear unsold homes via affordable housing may not benefit developers due to limited size and potentially low prices.
China's $41 billion lending facility to clear a backlog of unsold homes via affordable housing may not benefit cash-strapped developers, as the scheme has limited size and potentially low prices. The central bank's initiative, aimed at purchasing completed homes from developers, may only launch in bigger cities where affordable housing is available, and price offers from state-owned enterprises are expected to be low. Analysts suggest 50% home price discounts are needed for modest SOE returns.
June 10, 2024
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