Shenzhen Renters Offered Low-Interest Loans
Renters in Shenzhen are being offered low-interest loans in a pilot program aimed at helping people afford housing amid skyrocketing prices.
Interest rates as low as 0.363% will be offered for one-year loans and 0.396% for 1-to-3 year loans, according to product information from China Construction Bank’s Shenzhen branch, where the program is being rolled out. A personal mortgage rate at the bank comes with an interest rate of 5-15%, in comparison.
It isn’t clear whether the program will be expanded.
The motive isn’t profit, but instead for China Construction Bank to help the government build a healthy rental-housing market, an employee from the bank’s main branch told Caixin.
To qualify, borrowers must agree to use the low-interest loans to pay their rent in one lump sum based on the length of their rental contracts. The bank stands to gain because landlords can invest the lump sum they receive in investment plans.
The value of China’s rental housing market was 1.1 trillion yuan ($166 billion) in 2016 and is expected to reach 1.9 trillion yuan by 2025 before surging to 4 trillion yuan by 2030, according to estimates from Beijing-based property agent Lianjia.
A previous version of this story understated the current and anticipated values of China's rental housing market.
Contact reporter Liu Xiao (firstname.lastname@example.org)
Apr 12 07:07 PM
Apr 12 04:40 PM
Apr 12 12:08 PM
Apr 09 05:51 PM
Apr 09 04:54 PM
Apr 09 02:08 PM
Apr 08 07:01 PM
Apr 08 07:00 PM
Apr 08 05:11 PM
Apr 08 01:30 PM
- 1Call of Duty Mobile Developer Outplays Games Publisher as Timi Studio Earns More Than Activision Blizzard
- 2Huawei Deactivates AI and Cloud Business Group in Restructuring
- 3China Services Expansion Hits Three-Month High, Caixin PMI Shows
- 4Beijing Exhibitions: Everything You Need to See in April
- 5Finance Ministry to ‘Actively’ Push Property Tax Legislation
- 1Power To The People: Pintec Serves A Booming Consumer Class
- 2Largest hotel group in Europe accepts UnionPay
- 3UnionPay mobile QuickPass debuts in Hong Kong
- 4UnionPay International launches premium catering privilege U Dining Collection
- 5UnionPay International’s U Plan has covered over 1600 stores overseas