An aerial drone photo taken on Nov. 9, 2023 shows a newly-built residential complex in Feixi County of Hefei City, east China's Anhui Province. (Xinhua/Zhou Mu)

China on Friday announced a slew of measures to boost the property market, cutting minimum down payment ratios, setting up a relending facility for affordable housing and pledging to deliver unfinished homes.

The People's Bank of China (PBOC) and the National Financial Regulatory Administration announced that the minimum down payment ratios for individuals' commercial housing mortgages will be lowered to 15 percent for first-home purchases and 25 percent for second-home purchases.

"This is the lowest down payment requirement in history, which will be very helpful in boosting the property market," said Yan Yuejin, research director at E-house China R&D Institute.

The PBOC said in a separate statement on its website that the floor level of commercial mortgage rates for first and second homes will be canceled across the country.

Central bank branches can determine the lower limits of commercial mortgage rates in accordance with local conditions, and financial institutions should set the floor lending rates based on their business conditions and borrower risks, the central bank said.

"The lowering of mortgage interest rates and down payment requirements will improve residents' willingness to buy homes and consume other items," said Zhang Dawei, chief analyst at real estate agency Centaline Property.

According to the PBOC, the country will also cut the loan rates of the individual housing provident fund, a long-term housing savings plan made up of compulsory monthly deposits by both employers and employees, by 0.25 percentage points from May 18.

Chinese Vice Premier He Lifeng on Friday called for efforts to address risks concerning unfinished commercial housing projects, ensure the delivery of housing projects, and push forward the de-stocking of commercial housing.

He urged continued initiatives to fend off and defuse debt risks concerning property developers, and ensure the delivery of housing projects.

On Friday afternoon, the central bank said it would establish a 300-billion-yuan (about 42.25 billion U.S. dollars) relending facility for the government-subsidized housing project.

Local state-owned enterprises are encouraged to use the funds to buy reasonably-priced commercial homes that have completed construction, Tao Ling, deputy governor of the PBOC, told a press conference, adding that these homes will then be used to provide affordable housing.

As evidence of the government's increased financial efforts to support the property sector, commercial banks across the country issued a total of 963.6 billion yuan in real estate development loans and 1.3 trillion yuan in individual housing loans in the first quarter of the year, both showing significant increases compared to the fourth quarter of last year, according to Xiao Yuanqi, deputy head of the National Financial Regulatory Administration.

The country will treat the financing needs of real estate enterprises and projects with different ownerships equally, and will enhance financial services to align with the new model of real estate development, Xiao said at the press conference.

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