China’s property loans rise to a 2-year high on policy support

China’s outstanding property loans rose to a two-year high in June, central bank data showed on Tuesday, following a series of policy measures aimed at stabilising the sector.

China’s outstanding property loans stood at 53.33 trillion yuan (US$7.43 trillion) at the end of June, up 0.4 per cent from a year earlier, the People’s Bank of China said in a statement.

Growth accelerated from 0.04 per cent in March, reaching the highest level since June 2023, according to central bank data.

But growth remained modest, dwarfed by the double-digit increases seen before 2021.

Outstanding individual mortgage loans came in at 37.74 trillion yuan, down 0.1 per cent from a year earlier, while outstanding property development loans rose 0.3 per cent to 13.81 trillion yuan, the central bank said.

Beijing has rolled out a number of rounds of policy measures in recent years to support the property sector, including allowing debt-laden developers to sell housing inventories and undeveloped land to local governments.