China's property loans show slight decline, central bank's efforts take effect

Published 14/02/2025, 14:18
© Reuters.

Investing.com -- The latest data from China's central bank reveals a slight decrease in outstanding property loans at the end of the fourth quarter of 2024. The decline of 0.2% is less than the previous year's 1% drop, suggesting that the government's measures to support the property market are beginning to have an impact.

As of the end of 2024, outstanding property loans in China amounted to 52.8 trillion yuan ($7.27 trillion). This total includes loans allocated for real estate project development, which saw a 3.2% increase from the previous year, reaching 13.56 trillion yuan. However, individual mortgage loans experienced a 1.3% decrease, totaling 37.68 trillion yuan. This drop is less than the 1.6% fall recorded at the end of 2023.

China's property market has been in a severe crisis since 2021. A government initiative to reduce the debt of developers has resulted in a decrease in consumer wealth and household spending. Since September, policymakers have implemented various measures to stabilize the market. These include reducing mortgage rates and introducing a relending facility, enabling local governments to purchase unsold homes. More stimulus is promised for the current year.

The property sector was listed as a key area for additional credit support in the central bank's monetary policy implementation report, released on Thursday.

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