Faced with a collapse in mortgage lending and a financial crisis in the property sector, Chinese policymakers are scrambling to revive a once-booming housing market – and some are doing this by encouraging couples to have more kids.
“They not only help the development of population growth but also drive demand in the housing market. Preferential policies for home purchases for families with two and three children will be one of the key directions for future property market regulation.” ANZ says the 20 basis point reduction, the first nationwide adjustment since 2014, signals a broader appetite by the Chinese government to ease supply side constraints. There have already been signs of this in the past two months with regional governments offering cash subsidies and lower mortgage rates.
Like Australians, the Chinese aspire to own their own home. A two-decade construction boom that changed the landscape across the country, along with easy access to credit, meant that dream was easy to realise for many.