[photopress:shanghai_apartments4.jpg,full,alignright]The People’s Bank of China said about 36.8 percent of 20,000 respondents recently surveyed to gather intentions regarding money said ‘more saving’ is a better option at present than ‘more spending.’
On August 19, the central bank raised its deposits rates, the first hike in almost two years, with the one-year rate rising from 2.25 percent to 2.52 percent. The rate hike has had a small but measurable negative effect on the real estate market. Though it also allows commercial banks to offer a 15 percent discount on individual mortgages, up from the previous 10 percent discount, it still hit real estate consumption.
About 17.5 percent of respondents said they plan to buy property in the next three months, down 0.1 percentage points from a quarter ago.
Source: Shanghai Daily.