China removed the floor on mortgage rates and lowered the minimum down payment ratios for individual homebuyers in its most drastic move to shore up the beleaguered property market.
The People’s Bank of China lowered minimum down-payment ratio for first time buyers to 15% and cut it to 25% for second homes, according to a statement on May 17.
Spiraling declines in property prices are adding to the urgency. Official data on May 17 showed that home prices in April recorded the steepest month-on-month drops in a decade. New-home values slid 0.58% from March, while existing-home prices plunged 0.94%. From a year earlier, prices of new and used properties fell by a record.
