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China's outstanding property loans continued to decline during the first half of the year, reflecting the country's ongoing correction in the real estate sector. Data released by the country's central bank showed that total outstanding property loans, individual mortgage loans and property development loans all recorded year-on-year declines by the end of June. The figures indicate that financing activity in the property market remains subdued despite policy measures introduced over the past year to support homebuyers, ease liquidity pressures and encourage stability in the housing sector.
China's outstanding property loans stood at 50.74 trillion yuan (approximately USD 7.50 trillion) at the end of June, marking a 4.9% year-on-year decline, according to data released by the country's central bank on Tuesday.
The data showed that outstanding individual mortgage loans totalled 36.29 trillion yuan, registering a 3.8% decline compared to the same period last year.
The central bank also reported that outstanding property development loans fell 8.5% year-on-year to 12.65 trillion yuan, indicating that lending to real estate developers continued to remain under pressure.
China's property sector has been facing a prolonged slowdown since 2021, following tighter regulations on developer borrowing, weaker homebuyer sentiment and liquidity challenges faced by several major developers. Over the past year, Chinese authorities have introduced a series of support measures, including lower mortgage rates, reduced down payment requirements and financing assistance for developers, in an effort to stabilise the housing market.
However, the latest lending data suggests that credit growth linked to the property sector remains weak, reflecting cautious demand from both homebuyers and developers even as policymakers continue efforts to revive the market.
Source Reuters
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