Value of New Personal Mortgages Slides for Fifth Straight Quarter in Beijing
Song Yikang
DATE:  Aug 22 2018
/ SOURCE:  Yicai
Value of New Personal Mortgages Slides for Fifth Straight Quarter in Beijing Value of New Personal Mortgages Slides for Fifth Straight Quarter in Beijing

(Yicai Global) Aug. 22 -- New mortgages issued in Beijing slumped 70.7 percent annually in the second quarter, marking the fifth three-month period of decline as the Chinese capital looks to tighten control of its property market.

Newly issued personal mortgages from April through June tallied almost CNY7.9 billion (USD1.2 billion), according to data published by the local office of China Banking Regulatory Commission this week.

The regulator has been looking to restrain growth in new loans since the beginning of this year, it said in an accompanying statement, adding that the expansion of loans where real estate was pledged as collateral have slowed down thanks to the increasingly prudent control over the property sector. As of the end of June, the growth rate of such loans in Beijing had fallen 8.12 percentage points on the year.

Mortgage rates have also fallen as first-time buyers begin to take the lion's share of home loans. More than 80 percent of mortgages issued from April 2017 through June 2018 were for those who did not already own a home, the data shows.

The price of pre-owned houses also declined 3.5 percent on the year last month, while new houses became 0.2 percent more expensive than 12 months earlier, according to data from the National Bureau of Statistics.

Follow Yicai Global on
Keywords:   Beijing,Mortgages,Interest Rate,Beijing Banking Regulatory Commission,Shanghai