The central and local authorities have taken a raft of measures in an attempt to expand domestic housing demand and boost the sluggish real estate market.
In the context of the aggravating international financial tsunami, these measures are also expected to tap the enormous domestic demand potential for a steady economic growth to help the country survive the upcoming global economic cold.
The government has long held that a booming real estate industry should help to solve and improve ordinary people’s basic accommodation conditions.
On Oct 30, the People’s Bank of China, the country’s central bank, made a decision to lower the benchmark lending and depositing interest rates for domestic financial bodies. It also decided to lower housing transaction taxes and extend a preferential interest rate to ordinary self-accommodating purchasers.
Days later, the State department in charge of the country’s housing fund also announced its decision to raise conditional home buyers’ maximum loan amount to RMB 1.2 million in some regions.
Source: China View