China Homebuyers Cautious On Adding Leverage-Times

Potential homebuyers remain cautious despite eased rules and lower mortgage interest rates in over 100 cities to prop up the market, the Securities Times reported. The total transaction volume of second-hand housing in first-tier city Shenzhen in the first five months of this year was equivalent to a single month in 2020 when the market thrived, the newspaper said citing an unnamed sales manager. Policies should focus on reducing the cost of the entire supply chain and restoring developers’ credit, given that it is hard to stimulate demand when buyers are afraid of increasing leverage amid uncertain income expectations, the newspaper said citing analysts.