SHANGHAI, 30th May, 2024 (WAM) -- Real estate agencies in Shanghai have reported a significant increase in inquiries following the city's recent announcement of measures to provide further targeted support for homebuyers.
According to China Central Television (CCTV), the nine-measure package entails easing specific constraints on home buying and lowering financial criteria. This move follows the central Chinese government's introduction of a series of significant policies aimed at stimulating the real estate market on 17th May.
Notably, the down payment ratio for first-time homebuyers has been reduced to 20 percent from the previous 30 percent, while the ratio for second-homebuyers has been cut to 35 percent from 50 percent.
Additionally, the minimum five-year mortgage rate for first-time home purchases has been lowered to 3.5 percent, while the rate for second home purchases has been reduced to 3.9 percent from 4.5 percent.
Real estate agents in Shanghai reported a substantial rise in the number of inquiries on the night the new measures were announced.
Banks in Shanghai have also responded to the new policy by lowering the interest rate on commercial individual housing loans.