China lowers minimum down payment for commercial housing mortgages

The People's Bank of China (PBOC) and the National Financial Regulatory Administration (NFRA) have set the minimum down payment ratio for commercial housing mortgages at no less than 30 percent.

This adjustment also applies to properties designated for both commercial and residential purposes.

The policy aims to align with directives from the CPC Central Committee and the State Council, reflecting a strategic adaptation to the evolving supply and demand dynamics within China's real estate market.

Furthermore, it is designed to foster the establishment of a new, sustainable model for real estate development across the country.

This move underscores a concerted effort to stabilize the housing sector and ensure its long-term health.

The new national minimum down payment ratio provides a baseline, but its implementation will be tailored to local conditions.

Provincial branches of the PBOC and the provincial offices of the NFRA are empowered to independently set the specific floor ratios for minimum down payments within each city under their jurisdiction.

This approach adheres to the principle of 'city-specific policies,' allowing for flexibility based on local government regulatory requirements and the unique characteristics of individual urban real estate markets.

The aim is to ensure that the national policy is applied effectively while accommodating regional differences and preventing a one-size-fits-all approach that might not suit diverse local economic realities.