Property development lending growth in Shanghai eased last year
following tighter controls on the sector, the local banking
authority said yesterday.
Rigid controls on individual mortgage loans have had a big
effect in Shanghai as individual mortgage lending dropped sharply
in the fourth quarter, the Shanghai Bureau of the China Banking
Regulatory Commission said.
Individual mortgage started to drop since October, the authority
said, without giving detailed figures.
The central bank and the banking regulator require mortgage
holders who apply for another home loan to produce a down payment
of at least 40 percent and pay a 10-percent premium on interest
rates in a September 27 announcement. The requirement on third or
fourth mortgage are stricter.
The regulators in December further clear the definition of the
second and multi-mortgage by family as a follow-up move to curb
property prices. Property development lending growth eased last
year while residential property lending dropped sharply, the local
banking regulator said.
Property development lending rose 6.8 percent last year to
200.97 billion yuan (US$28 billion) at domestic banks in Shanghai.
The growth is 22.6 percentage points lower than the growth a year
ago.
Residential real estate lending decreased 26.1 percent to 65.74
billion yuan on China's moves to curb the property industry.
(Shanghai Daily February 19, 2008)
