Industry insiders predict that the specific plan for lowering existing home loan interest rates is unlikely to be introduced before the 'National Day' holiday.
The State Council Information Office press conference announced that the central bank will lower the existing home loan interest rates and unify the minimum down payment ratio for home loans.
Specifically, it will guide commercial banks to lower existing home loan interest rates to levels near new home loan rates, with an average expected decrease of about 0.5 percentage points; the minimum down payment ratio for second home loans at the national level will be reduced from 25% to 15%, unifying the minimum down payment ratio for both first and second home loans.
After contacting several state-owned and commercial banks, reporters received responses indicating that most banks have not yet issued detailed rules for lowering existing home loan interest rates, and specific plans are still under study for unified adjustment later. 'In addition to waiting for instructions from the head office, we also need to consider local policies and maintain consistency,' a staff member of a commercial bank told the reporter.
Industry insiders predict that the specific plan for lowering the interest rates on existing housing loans is unlikely to be introduced before the "National Day" holiday.
According to the Securities Times APP, the Zhongzhi Research Institute released a report stating that on September 24, the State Council Information Office held a press conference. Overall, this time the central bank released multiple bullish news, which will have a positive impact on the macroeconomy and the real estate market. The reserve requirement ratio cut and interest rate reduction will boost the economy by releasing liquidity and reducing the cost of funds. The improved economic outlook is expected to repair residents' income expectations, lower existing house mortgage rates to further stabilize home buyers' expectations, restore market watchful sentiment, and lower the 7-day reverse repurchase rate will further guide the downward trend of LPR for maturities longer than 5 years in October, continuing to reduce home purchase costs. The minimum down payment ratio for the second house will also significantly lower the threshold for residents to buy houses. With multiple measures being implemented simultaneously, it is expected to stabilize housing prices and accelerate the bottoming out of the real estate market.
Morgan Stanley pointed out that the central bank announced multiple monetary policies to support the real estate market, measures slightly exceeding market expectations. It is believed that the measures may boost fourth-quarter house sales and destocking, potentially helping to ease the downward pressure on housing prices. The central bank estimates that lowering the stock housing loan interest rate will help 50 million families save 15 billion yuan in interest payments each year. Morgan Stanley expects it to be favorable for shopping mall operators, including China Res Mixc, China Res Land, Longfor Properties, and Seazen, based on an easing trend in retail sales decline.
Real estate-related industry chain companies:
China Overseas Land & Investment Ltd (00688), C&D International Group Co., Ltd. (01908), Yuexiu Property Company Limited (00123), Greentown China Holdings Limited (03900), Sunac China Holdings Limited (01918), Longfor Group Holdings Limited (00960), Sino-Ocean Group Holding Limited (03377), China Vanke Co., Ltd. (02202), China Resources Land Limited (01109), and Agile Group Holdings Limited (00884).
Property management companies include China Resources MIXC (01209), Poly Property Services (06049), China Overseas Property Services (02669), and Midea Real Estate (03990).
Real estate intermediaries: Ke Holdings (02423), CG Services (06098)