5% mid-to-late range real estate loan interest rate around 4%
Reviving the macro economy, mobilizing relief pitchers’ real estate
Authorities emphasize ‘not stimulating the real estate economy’
[베이징=뉴스핌] Correspondent Choi Heon-gyu = As the Chinese monetary authorities made clear the signal to cut interest rates, the loan procedures for real estate in major metropolitan areas are speeding up and interest rates are falling one after another.
While the People’s Bank of China, the central bank of China, is accelerating support for the real economy through interest rate cuts in early 2022, the period for real estate loans in large cities such as Beijing, Shanghai, Guangzhou and Shenzhen has been shortened and the loan interest rate has also fallen to the high 4% level, according to the China Securities Times. announced on the 21st.
On the 21st, the People’s Bank of China lowered the LPR (January), the de facto benchmark interest rate for China, and lowered the 1-year LPR and the 5-year LPR by 10 basis points (0.1 percentage points) and 5 basis points (0.05 percentage points), respectively, by 3.7% and 4.6 percentage points. announced in %. The People’s Bank of China announces the LPR rate by averaging the rates reported by 18 commercial banks at 9:15 am on the 20th of every month.
In particular, it is observed that the Chinese authorities are mobilizing real estate as a means of stimulating the economy, although the rate cut for the five-year or longer LPR, which has been adjusted for the first time in two years, is limited in that it has a small width (5bp) but has a large impact on the real estate market. is evoking
Many big city banks such as Beijing, Shanghai and Chongqing are generally accumulating large amounts of real estate loan funds compared to when they were transferred, and it is known that the period from loan application to examination execution has been shortened all at once.
| [베이징=뉴스핌] Correspondent Heon-gyu Choi = Skyscrapers in Shenzhen City, Guangdong Province, soaring soaring into the sky. Filmed on Newspim in December 2021. 2022.01.21 chk@newspim.com |
Citing a construction bank official, China Securities Times said that it was necessary to wait for several months until the end of 2021 to get a loan for an existing home, but now there is almost no waiting time, the loan review is reduced in one week, and the loan is executed within three weeks.
Loan interest rates are generally on a downward trend. A bank in Shenzhen, Guangdong Province, cut the first-home purchase loan rate to 4.9%. It is rare in recent years for the real estate loan interest rate to drop below 5% in Shenzhen, where the real estate speculation frenzy is strongest in the country.
A bank in Shanghai lowered the first home purchase loan rate to 4.95% by applying 35bps to the 5-year LPR rate (4.6%). Previously, the interest rate on this loan product was 5%. The loan interest rate applied to purchase a second home has also been cut from 5.7% to 5.65%.
Large banks in Guangzhou, Guangdong Province, also cut home loan interest rates by 20 basis points. Since the People’s Bank of China announced the lowering of the LPR on January 20, the interest rate on the first home purchase loan in Guangzhou has been moving between 5.6% and 5.8%.
Some observers say that the Chinese authorities are still maintaining a policy to curb real estate speculation, saying that ‘Bangzhou Buqiao’ drawing a line
Chinese economists said that the main purpose of the January LPR rate cut is to meet the liquidity of the new year and lower the financial institutions’ funding costs to lower the burden on the real economy, not to inject money into the real estate market.
 |
| [베이징=뉴스핌] Correspondent Heon-gyu Choi = Construction of an apartment building and a mixed-use building is underway in Longgang District, Shenzhen City, Guangdong Province, southern China. Filmed on Newspim in December 2021. 2022.01.21 chk@newspim.com |
Beijing = Correspondent Choi Heon-gyu chk@newspim.com
