China hopes lower interest rates will boost housing markets

Global Business

Research data shows Shanghai’s housing market saw some growth during the Spring Festival, while many cities registered no sales at all. The government is hoping the interest rate cut at the end of last month will begin turning things around. Hu Xiaocen filed this report from Shanghai.

China hopes lower interest rates will boost housing markets

China hopes lower interest rates will boost housing markets

Research data shows Shanghai's housing market saw some growth during the Spring Festival, while many cities registered no sales at all. The government is hoping the interest rate cut at the end of last month will begin turning things around.

Highlights:

  • On Feb. 28, the People’s Bank of China cut the benchmark deposit and loan interest rates by 25 basis points. A one-year lending rate of 5.35 percent is encouraging some potential home buyers.
  • One expert says the interest rate cut will have only a limited effect on pushing up trading volume.
  • For some potential home buyers, getting cheaper loans is still not enough for them to make the buying decision now.
  • Home purchase restrictions are another issue that many are waiting to hear more about from the two legislative sessions currently being held in Beijing.