Regulators Curb Consumer Loans for Housing
It is estimated that about one trillion yuan’s worth of credit funds, including part of personal consumption loans and business loans, have entered the real estate market over the first eight months of 2017. In response, financial authorities in first-tier cities, i.e. Beijing, Shanghai, Guangzhou, and Shenzhen, once again began to crack down on using leverage to buy homes.
Credit is the key factor that determines short-term housing prices. Given the current credit tightening trend, the pressure on short-term home price control is big. Two key factors determine the market trend in the real estate market after the third quarter of 2017: the degree of restraints on consumer credit on the personal side; and the degree of restraints on trust on the corporate side.