Slower rise in home loans in July for 8th straight month

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GROWTH of home loans in Shanghai slowed in July for the eighth consecutive month amid a cooler real estate market in the city, the Shanghai headquarters of the People’s Bank of China said a statement yesterday.

Banks in Shanghai extended 10.68 billion yuan (US$1.6 billion) of mortgages in July, down 14.84 billion yuan from the same month last year, the statement said.

The slower rise in home loans was due to the city government imposing higher downpayment and mortgage rates, as well as tightening home purchase restrictions last November to rein in rapid increases of home prices.

Sales of residential projects in the January-July period tumbled 36.5 percent year on year to 7.32 million square meters, data with Shanghai Statistics Bureau showed.

In July, home loans accounted for nearly 60 percent of the total new yuan lending in Shanghai, above the 37.2 percent proportion recorded for the first half of the year.

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