PBOC Introduces Localised Property Interest Rate Mechanism

The People's Bank of China will give local authorities the power to independently adjust the lower mortgage rate limit for first time buyers in cities where the sales price of new builds has decreased for three consecutive months, according to Yicai.com. The paper said the move gives local policymakers flexibility to adjust rates that suit local conditions, which will help boost demand. The new mechanism would be applicable to 39 cities given current market conditions. The new measures follow a similar move in September last year that reduced lower mortgage rate limits in cities where sales price for new builds had fallen year-on-year between June and August 2022, the paper said.