Nearly one month after rollout, the Ministry of Finance’s Financial Markets
Department says China’s mortgage interest-subsidy policy has been implemented
smoothly and is showing initial effects. Buyers and lenders report increased
viewings and loan activity and say the subsidy has materially eased monthly
mortgage payments. Entry-level secondhand units are seeing faster turnover in
several cities; in Beijing some sellers have relisted properties below 1.5 mln
yuan to meet policy thresholds and accelerate sales, and brokers report
completed transactions citing the subsidy. Market participants expect the
measure to lift turnover for small, older central-city secondhand flats and for
peripheral new and used homes that experienced larger price declines, supporting
transaction volumes.
