The People’s Bank of China (PBoC) said on Thursday (5) it will continue to allow local governments to reduce or eliminate the floor of financing rates for first-time buyers if housing prices persistently fall. , in yet another attempt to revive the country’s real estate sector.
In a statement released on its website, the PBoC announced that incentives for the first home purchase will be maintained if housing prices register monthly and annual declines for three consecutive months.
Local governments must release home price assessments to determine whether or not to maintain the incentive policy, the PBoC detailed.
The Chinese BC introduced a similar policy in September, in an attempt to stimulate demand for housing, noting at the time that the easing would only take effect in 2022.
The policy revamp is the latest sign of the Chinese government’s continued efforts to try to reverse the prolonged housing crisis that has weighed on the world’s second-largest economy.
Amid the struggles in the real estate sector, China’s economy is unlikely to be able to meet its 2022 growth target of around 5.5%. Economists believe China’s Gross Domestic Product (GDP) grew by less than 3% last year .
*With information from Dow Jones Newswires
Source: CNN Brasil
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