China Vanke’s contracted sales rose 11.3% to RMB 23.3 billion in May as it resumed investments in new projects after getting bank funding and a possible boost from Beijing’s stimulus policies for the real estate sector, reports the South China Morning Post. For the first five months this year, it had transacted sales of RMB 102.2 billion ($14.1 billion), down 39% from a year ago.
The monthly sales growth emerged as China’s government unveiled a historic rescue package for the sector last month, including a RMB 300 billion relending facility and cuts in mortgage rates.
Major Chinese cities including Shanghai, Shenzhen, and Guangzhou, have lowered mortgage rates and relaxed home purchase restrictions to lure buyers. China’s technology hub Shenzhen, where China Vanke is based, reduced down payment requirements by 10 percentage points to a minimum of 20% for first-time buyers and 30% for second-home purchasers.