(Yicai Global) June 5 -- As Beijing government continues to tighten real estate regulation and financial institutions toughen up on credit control, commercial banks in the city have raised mortgage rates by as much as 20 percent over the benchmark.
Some Beijing-based banks have hiked the minimum mortgage rate to 10 percent more than the benchmark rate for first-time homebuyers, and 20 percent for second-time buyers, The Beijing News Reported, citing data from local real estate agencies. The new rates will come into effect today.
Not all banks have announced rate hikes, the report added, saying that as banks had dished out most of their available credit, they had stronger bargaining power for remaining loans.
Second-hand property prices fell in eight of the 12 active local markets in Beijing, with only four marketing positive growth, according to data from 525j.com, a market research institute. The largest falls were in Tongzhou and Yizhuang, with property prices plunging more than 20 percent in both areas.
Total property sales have also fallen in the city due to the price slump. Some real estate agencies said sales had fallen as much as 60 percent.