(Yicai Global) Dec. 14 -- China's residential mortgages nudged up 1.3 percent in November from the month before as regulators take steps to steady the market amid a string of recent high-profile debt defaults by property developers, according to the latest data.

Home loans increased by CNY401.3 billion (USD63 billion) last month to CNY38.1 trillion (USD6 trillion), according to data released by the People’s Bank of China yesterday. In October they had gained by CNY348.1 billion. This is only the second time that the central bank has released statistics on housing loans for individuals and as it sends out the signal that it is safeguarding the healthy development of the property sector.

Real estate investment has cooled in the second half and as a result policies have relaxed to a certain extent to increase the amount of residential mortgages and development loans available and to encourage developers to sell more debt in the interbank market, said Li Qilin, director and chief economist of Hongta Securities Research Institute.

The easing measures are still marginal and the sector will not bounce back to expansion yet, Li added. Mortgage rates are also expected to fall following the recent cut in banks’ reserve requirement ratio.

As real estate policies are adjusted, some cities might lower mortgage rates for first-time home buyers, and commercial banks could speed up the approval of mortgages and development loans, said Lian Ping, chief economist at Zhixin Investment and dean of Zhixin Investment’s research institute.

The PBOC may further strengthen financial support for rental housing and promote the construction of affordable housing. It may improve the short-term financing environment for real estate companies, provide reasonable and stable financial support and raise the proportion of direct financing.

Editor: Kim Taylor