China’s financial regulators including the PBOC and the National Administration of Financial Regulation issued a national mortgage easing policy at the end of August, cutting the down-payment requirements for first- and second-time home buyers and lowered rates on existing mortgages. Read more …
After communicating with major real estate developers and agencies in China, USB found that the initial market response to the policy relaxations has been positive, with a strong rebound in property sales in tier-one cities, UBS said in a research note.
The foot traffic of some property projects increased by 30% – 50% month on month, and the conversion has also improved, it said.
However, the rebound in real estate sales in first-tier cities is likely to be short-lived, expected to last for 4 – 5 weeks, and it will only help to unleash housing demand from upgraders, but won’t solve the issues of weak property price and income expectations, it said.
