The Rising Influence of Rising Affluence

[DewDiligence]

What’s up with China’s housing market?

http://online.wsj.com/article/SB10001424052702303703004577473594162417030.html

China is giving higher priority to stimulating growth amid concerns that its domestic economy is cooling too rapidly. The People's Bank of China cut interest rates this month [#msg-76397675]—its first such move since December 2008—while the central bank had eased the cash reserve requirements for banks twice this year.

The government also has encouraged banks to offer lower mortgage rates for first-time home buyers and called on developers to increase construction of smaller and cheaper apartments. It is giving some leeway to cash-hungry local governments to loosen property restrictions.

Some banks have been offering discounts of as much as 15% on mortgage rates for first-time home buyers since March, attracting customers who are more sensitive to high prices.