Shanghai to Raise Housing Loan Ceiling

The local government of Shanghai is considering raising the housing loan cap to Rmb700,000 (USD112,000) from Rmb400,000 (USD64,000).

Shanghai said it plans to raise the ceiling for housing loans under its provident fund by as much as 75% to help low and mid-income residents improve their housing conditions.

Shanghai’s move also comes at a time that property sales in the country have dropped by the most in three years due to a glut of housing supply.

China’s Ministry of Housing and Urban-Rural Development has been calling on local governments to make good use of the housing fund to help their residents.

China’s property market has been experiencing sluggish sales despite measures by the government to entice new homebuyers to make purchases.

China’s real estate market has been considered as one of the major drivers of the country’s economy.