Loans to real estate expand faster in Q3 By Feng Jianmin | October 24, 2013, Thursday
Lending to property and land related activities rose faster in the third quarter amid China’s booming real estate market, central bank data showed yesterday.
At the end of September, 14.17 trillion yuan (US$2.33 trillion) in outstanding loans went into real estate, up 19 percent from a year earlier. The growth was 0.9 percentage point quicker than the annual expansion recorded at the end of June, the People’s Bank of China said in a statement yesterday.
Loans for property development climbed 14.9 percent from a year ago to 3.43 trillion yuan in the third quarter. The growth was 3.9 percentage points faster than in the second quarter.
But the rise in loans for land development slowed to 13.1 percent from 17.2 percent at the end of the second quarter.
At the end of the third quarter, outstanding mortgages surged 21.2 percent from a year ago to 9.47 trillion yuan. The growth picked up 0.1 percentage point from a quarter earlier.
New home sales in China surged nearly 35 percent in the first nine months of this year from a year ago, the National Bureau of Statistics said last Friday. In September alone, 691.1 billion yuan worth of new homes were sold in China, up from 514.6 billion yuan in August.