China has eliminated the floor on mortgage rates and reduced the minimum down payment ratios in a bid to prop up its ailing property market. The People’s Bank of China declared that the minimum down payment ratio has been adjusted to 15 percent for first-time buyers and 25 percent for second homes.
This decision follows significant declines in property prices, with April witnessing the sharpest month-on-month decreases in ten years. New-home values saw a decline of 0.58 percent compared to March, while existing-home prices dropped by 0.94 percent. Both new and existing property prices have witnessed substantial year-over-year declines.
