Beijing lowers downpayment ratios for first-time buyers and eases mortgage interest rates to support struggling real estate sector.
Beijing eases homebuying requirements, lowering downpayment ratios for first-time buyers to 20% from 30% and for second homes to 30% outside the fifth ring road and 35% within. Mortgage interest rates also lowered, aiming to support the struggling real estate sector. This follows the central government's announcement of a 300 billion yuan ($41.3 billion) fund to buy unsold homes. Other major Chinese cities, including Shanghai, Shenzhen, and Guangzhou, have implemented similar measures. Despite these efforts, skepticism remains due to limited central bank funding and slow progress of existing trial programs.
June 26, 2024
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