China raises mort­gage rates in line with in­ter­est rates

The Pak Banker - - I Nternational -

BEI­JING: China raised mort­gage rates by 25 ba­sis points on Sun­day, the Min­istry of Hous­ing and Ur­ban-Ru­ral Devel­op­ment said, the sec­ond in­crease this year, af­ter bench­mark in­ter­est rates in­creased on Satur­day. Af­ter Sun­day's move, the rate for mort­gage loans longer than 5 years will be 4.30 per­cent, and 3.75 per­cent for those of five years and shorter.

China's cen­tral bank raised in­ter­est rates by 25 ba­sis points on Satur­day, the sec­ond time in just over two months, in a bid to con­tain the coun­try's stub­bornly high in­fla­tion. "This will fur­ther in­crease the cost of home pur­chases and will, to some ex­tent, curb in­vest­ment de­mand in the prop­erty mar­ket," the of­fi­cial Xin­hua news agency cited Chen Ming, mar­ket­ing chief of real es­tate 5i5j, as say­ing.

Bei­jing started tight­en­ing the prop­erty mar­ket late last year, but house prices have re­mained out of reach for most mid­dle­class fam­i­lies in many cities, al­though house price has slowed re­cently. Land cost, a ma­jor con­trib­u­tor to high hous­ing prices, have showed signs of re­bound in re­cent weeks, trig­ger­ing con­cerns of fresh tight­en­ing steps by the cen­tral govern­ment. -Ap

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.