Central Bank Eases Property Market Regulations

Central Bank Eases Property Market Regulations Central Bank Eases Second Home Mortgages and Land Purchase Loans Twice: From March and September 2026, the loan-to-value ratio for second homes will be raised from 50% to 70%, and the 18-month construction deadline for developers purchasing land will be removed. Funding Pressure Eases for Homeowners Upgrading, but Loan Approvals Remain Strict: The increased LTV for second homes reduces the required down payment by about 10%, but strict bank scrutiny means it remains to be seen if the full 70% loan will be approved. Developers Slowing Project Launches to Support Housing Prices: With the construction deadline restriction lifted, developers can postpone development and reduce pre-sale supply, lessening the pressure to lower prices, making a significant housing price drop unlikely. Property Transaction Volume Expected to Gradually Recover, Prices to Consolidate: Supported by the "Qing An 3.0" housing loan program and wealth effects from the stock market, experts generally anticipate a scenario of slightly increased volume and flat or slightly declining prices in the fourth quarter. Policy Focus Shifts to Owner-Occupier Driven Moderate Recovery: Credit controls are not fully lifted, with strict management remaining for high-priced homes and multiple property owners, limiting speculative space and guiding the market structure towards owner-occupancy and long-term holding.