Guangdong real estate financing -white list- projects have landed more than 83.7 billion yuan

During a recent press briefing on October 22, 2023, the Guangdong banking sector shared insights into its strategies for enhancing real estate financing. According to officials from the Guangdong Financial Supervisory Bureau, banks in the region have made significant strides in implementing the new real estate financing coordination mechanism. To date, financial institutions have provided credit amounting to 135.018 billion yuan for 404 projects listed on the “white list,” with 331 projects having secured funding, totaling 83.709 billion yuan—ranking first nationally in terms of actual funding amounts. Notably, about 70% of these projects are from private developers, accounting for over 80% of the total credits extended.

Liu Yunhai, a member of the party committee and a second-level inspector at the Guangdong Financial Supervisory Bureau, emphasized the importance of collaboration with various local government departments, including the Guangdong Provincial Department of Housing and Urban-Rural Development. He pointed out that city governments play a crucial role in coordinating efforts, focusing on both urban development and project specifics. The goal is to streamline the review, credit approval, and disbursement processes for projects on the “white list,” thereby facilitating timely project completion and protecting the legitimate rights of homebuyers. Moving forward, the bureau plans to include all commercial housing projects within the “white list,” ensuring comprehensive access to financing.

Moreover, Liu highlighted Guangdong’s commitment to macroeconomic regulation and support for the real estate sector through various policies, including the “16 Financial Policies” and differentiated housing credit measures. This approach aims to meet the financing needs of diverse property developers consistently, promoting year-on-year growth in real estate credit. As of late September, the balance of real estate loans in the region stood at 5.46 trillion yuan, reflecting a 1.43% increase compared to the previous year. In the first three quarters of this year, new loans for real estate development totaled 37.589 billion yuan, a substantial increase of 35.556 billion yuan from the same period last year. Personal housing loans also showed positive growth, reaching 4.11 trillion yuan, while real estate acquisition loans amounted to 43.537 billion yuan, up by 5.02%.

In addition to these efforts, Guangdong has swiftly implemented new policies aimed at stabilizing the real estate market. To support the People’s Bank of China in its initiative to lower existing mortgage rates, major banks in Guangdong are expected to complete uniform adjustments by the end of October. These adjustments are anticipated to save homebuyers approximately 15 to 20 billion yuan annually in interest payments. The Guangdong Financial Supervisory Bureau is guiding local banks in applying the latest policies on down payment ratios for personal housing loans, actively supporting both essential housing needs and improvements.