Real Estate and Individual Housing Loan Growth Slowed in First Three Quarters, PBOC Says
(Yicai Global) Oct. 24 -- Both the amount of yuan-denominated real estate loans and the individual housing loan balance posted annual increases in the first three quarters of the year at rates that represented slowdowns in growth, a People's Bank of China report on financial institutions' loans in the period said.>
The yuan-denominated real estate loan balance had ren 22.8 percent annually to USD4.7 trillion (CNY31.1 trillion) by the end of last month, with a 1.4-percentage-point drop in growth rate compared with the previous quarter. In the first nine months, such loans witnessed a CNY4.4 trillion increase in value, accounting for 39.6 percent of all loans, up 1.5 percentage points from the first half.
The individual housing loan balance was CNY21.1 trillion, up 26.2 percent annually. Its growth rate was 4.6 percentage points slower than that of the previous quarter.
Tightened housing control measures introduced by local governments have curbed individual housing loan growth, experts said. Sale restrictions and increases in housing loan interest rates dcourage speculative investments in the housing market and individual housing loan growth may continue to decelerate with the establhment of long-term housing control mechanms, they said.