South China Morning Post

Cheap debt is not enough to get China’s homebuyers spending again

After repeated attempts to arrest the protracted slump in the property sector, Chinese policymakers are trying a new inducement: paying part of homebuyers’ mortgage interest. A new programme, announced in late September, offers eligible first-time buyers subsidies of one percentage point of the interest rate of mortgage loans issued by banks for up to five years, provided they take out a mortgage during the next 12 months. The offer might bring forward some purchases but it won’t deliver the...

By South China Morning Post

1 min read
Cheap debt is not enough to get China’s homebuyers spending again
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