Shanghai home loans falls in August

KUALA LUMPUR: Home loans in Shanghai fell for the first time this year in August following months of slow growth in mortages as China's central bank tightened credit policies, the Shanghai Daily reported.

According to the Shanghai headquarters of the People's Bank of China, individual mortages dropped by 1.06 billion yuan (RM740 million) in the city last month, compared with an increase of 17.3 billion yuan a year ago.

New home loans fell by 510 million yuan, while second-home loans fell by 550 million yuan.

Although sales of homes rebounded in August, it will be a month before mortgage data will catch up and reflect the full picture, the report said.

Shanghai Uwin Real Estate Information Services Co said that in August, sales of new homes jumped by 70% to reach a four-month peak of 730,000 sq m.