China Home Loan Market to be Dominated by Home Purchase Segment During the Forecast Period
Increasing housing cost and
rising household construction in China to fuel the growth of the home loan market
across the country through 2028.
According to
TechSci Research report, “China Home Loan Market – By Region,
Competition,
Forecast & Opportunities, 2028F” The China home loan market is
anticipated to project robust growth during the forecast period owing to attractive
marketing strategies, increasing online portals, low interest rates and
increasing support from chatbots. A mortgage, commonly referred
to as a home or housing loan, is a sum of money that a person borrows,
typically from banks and other lending institutions. Depending on the loan's
terms, the borrower must repay the loan balance plus interest over a period of
time that can range from 10 to 30 years in easy monthly instalments, or EMIs.
There are two different kinds
of home loans: secured loans and unsecured loans. Banks and other
financial institutions use the home as a guarantee for secured home loans. The
secured house loan often includes a longer payback period of 10 to 15 years, a
greater loan amount, and a set interest rate. Unsecured house loans typically
lack collateral, are less in quantity, and have higher interest rates than
secured loans.
A
long-term housing savings scheme, the housing provident fund (HPF) is funded by
required monthly contributions from both employers and employees. Employees are
the only ones who may utilize it for home-related costs. In addition to offering participants low-interest
housing mortgages, it offers an employment-based housing savings account with
employer contributing more than5% of salaries.
Browse over xx market data Figures spread through xx Pages and an in-depth TOC on the "China Home Loan Market."
Other distinct Chinese traits
can be seen in the new house developments in China. In particular, the national
government made significant investments in the creation of public housing and
interfered with the plans for house building. The government's investment in
public housing caused the housing supply curve to shift upward and its intervention
reduced the discrepancy between the amount of this type of housing available
and the demand for it. As a result, compared to developed nations, China's new
house development has tended to react differently to housing market signals.
According to calculations by
Securities Daily, first-time homebuyers can obtain loans for previously owned
properties at interest rates below 5% in places such as Shanghai, Shenzhen,
Heilongjiang Province's Harbin, and Jiangsu Province's Suzhou.
The China
Home Loan Market is divided on the basis of type, end user, tenure period,
region, and competitional landscape. Based on type, the market is further segmented
into home purchase, refinance, home improvement, construction, others (re-sale etc.).
Home purchase loan will be in demand during the forecast period in China Home
Loan Market owing to urbanization and increasing disposable income.
Based
on end user, the market is further split into employed individuals,
professionals, students, entrepreneur, and others (homemaker, unemployed,
retired, etc.). This segment is mostly dominated by employed individuals as
income is one of the main factors in fulfilling eligibility criteria.
Based on
tenure period, the market is segmented into less than 5 years, 6-10 years,
11-24 years, and 25-30 years. On the basis of region, the market is divided into
North, East, North-East, South-Central, North-West, South-West.
Key market players in the China
Loan Market include:
- ICBC Co., Ltd.
- Bank of China
- China Construction Bank Corporation
- Agricultural Bank of China Limited
- Hua Xia Bank Co., Limited
- Industrial Bank Co., Ltd.
- China Everbright Bank Co., Ltd.
- Postal Savings Bank Of China (PSBC)
- China CITIC Bank International Limited
- China Merchants Bank Co., Ltd.
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"Increasing support from
digital banking and usage of chatbots with AI features is a significant trend
expected to impact growth over the forecast period. Increasing housing cost, rising
construction of households, increasing disposable income and attractive
marketing strategies are the leading factors that will positively impact the China
Home Loan Market. Owing to the wide range of loans available to meet the
specific needs of customers and the growing popularity of the internet channel,
the market is growing.” said Mr. Karan Chechi, Research Director with TechSci
Research, a research-based global management consulting firm.
China
Home Loan Market, By Type (Home Purchase, Refinance, Home
Improvement, Construction, Other (Re-Sale etc.)), By End User (Employed
Individuals, Professionals, Students, Entrepreneur, Others (Homemaker,
Unemployed, Retired, etc.)), By Tenure Period (less than 5 years, 6-10 years,
11-24 years, and 25-30 years), By Region, Competition, Forecast &
Opportunities, 2028F, has evaluated the future growth potential of Home
Loan products and provides statistics and information on
market structure, size, share, and future growth. The report is intended to
provide cutting-edge market intelligence and help decision-makers take sound
investment decisions. Besides, the report also identifies and analyzes the
emerging trends along with essential drivers, challenges, and opportunities
present in Home Loan market in China.
Contact
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