Shanghai government lowers compulsory down payment and mortgage interest rate to support real estate sector

shangai towers

Bankinter| The Shanghai local government has approved measures to support the real estate sector: it is reducing the amount of the mandatory down payment and the interest rate on mortgages. The measure is expected to be extended to other cities such as Beijing and Shenzhen. The down payment required from buyers is reduced by 10% to 20% of the property value for first home buyers and up to 30% for 2nd home buyers.

Analysis: Following the bailout package for developers earlier this year, the Chinese government continues to introduce measures to support the recovery of the housing sector, which accounts for approximately 60% of Chinese household wealth.

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