Booming sales and investment in China’s real estate sector contributed to a significant rebound in property loan volume in the third quarter, according to data from the central bank.
Reuters reported that banks in China lent 416.8 billion yuan (S$80.68 billion) to property developers and home buyers in Q3, an increase of 29 percent from the previous quarter.
Aside from that, outstanding loans to developers at the end of September rose by 12.1 percent to 2.96 trillion yuan (S$572.98 billion); while outstanding mortgage loans climbed 12.6 percent to 7.8 trillion yuan (S$1.509 trillion).
The sharp rise in loans supports other data which shows a slight recovery in home prices and sales. This suggests that Beijing’s property cooling measures could be less stringent than some believe.
At the same time, outstanding loans for fixed-asset investments rose 10.9 percent to 20.7 trillion yuan (S$4 trillion) in the third quarter as compared to the same period last year, and an increase of 10.3 percent at the end of June.
Moreover, the central bank’s data revealed that loans for public housing construction reached 130 billion yuan (S$25.164 billion) in the first nine months.
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