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, 2028

China Home Loan Market is anticipated to project robust growth during the forecast period on account of increasing marketing strategies, automation of loan process, increasing household construction, and increasing digitalization. The majority of people's primary and most expensive goal is to acquire a home. The construction of a house requires a lot of work on the side of the buyer, and the only way to fit the property into their budget is by taking out a home loan. The acquisition of a new house or apartment, the land on which to build it, or even home improvements, expansions, and repairs can all be funded by a home loan.

Since 1978, there has been a significant rural-urban migration in China. The 35 largest metropolitan regions saw a dramatic increase in population. The demand for housing in the major metropolitan regions increased significantly as a result of this significant rural-to-urban migration. Additionally, as employment and disposable money increased, so did the need for homes with larger space.

Increasing Housing Cost Will Fuel Market Growth

Currently, housing costs in China are high and still rising. The entire society is concerned about the phenomenon of rising housing costs. Ordinary families cannot afford a home and the pressure of filling up all available housing options has led to discontent with the high cost of housing. In an effort to stabilise home prices, the government has also implemented a number of control measures, although these have not been successful in slowing the increase in prices. The national economy's ability to grow healthily has been gravely hampered by the current, sustained high home prices. Real estate bubbles' formation will lead to economic stagnation, and excessive housing costs will result in a number of social and economic issues. Home loan market will directly be influenced by increasing housing loans. In the primary market, mortgages come in the form of commercial personal loans and Housing Provident Fund (HPF) loans. Due to the amount limitations on HPF loans and the fact that they are sometimes insufficient to close deals because of the high cost of housing, hybrid mortgages that combine the maximum amount of HPF and commercial mortgages were created. The majority of mortgages in the market are commercial mortgage loans. Therefore, rising housing prices will have direct impact on China home loan market.

Increasing Household Construction Will Boost The Market Growth

The macroeconomic and socioeconomic development of a country is significantly influenced by the construction of new homes. New housing development has a large direct and indirect impact on the overall loan market. This is especially true in countries with economies that are supposedly driven by construction, such as Spain and China. The Chinese government started its housing market reform to better living conditions of urban residents and provide enough houses for immigrants from rural areas. Owing to the reform, there has been a significant increase in housing demand and price growth, more new homes were being built. A significant number of people moved from rural to urban areas in search of work, as a result of the swift economic growth. The housing reform gave families the opportunity to buy more comfortable homes. The need for more comfortable living drove up home prices even further, which attracted more capital and loans for the development of more homes. China invested $29 billion in special financing to complete housing projects. As a result, countless new house construction projects and more new real estate businesses were launched in urban China. Thus, all these factors played an important role in China home loan market.

Low Interest Rate of Home Loan in China Will Lead to Market Growth

China permitted banks to lower the limit on home loan interest rates. The People's Bank of China and China's Banking and Insurance Regulatory Commission state that the purpose of the action is to support housing demand and encourage the market for housing market in the nation to grow healthily.  In response to weak market demand, Chinese authorities are easing limits on home purchases in some locations. Evergrande, a major domestic real estate player, has reported growing liabilities, and other businesses have seen a dramatic decline in revenues. In addition to interest rates dropping, loans are being granted more quickly. In China, nearly one-fifth of all bank loans are for home loans. In the 103 locations across the country, applicants receive their loans in around a month, with 19 cities taking less than 20 days. Thus, lower interest of home loans in China is expected to boost the market growth.

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Market Segmentation

The China Home Loan Market is segmented based on type, end user, tenure period, region, and competitional landscape. Based on type, the market is further fragmented into home purchase, refinance, home improvement, construction, others (re-sale, etc.). Based on end user, the market is segmented into employed individuals, professionals, students, entrepreneur, others (homemaker, unemployed, retired, etc.). 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.

Company Profiles

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 and China Merchants Bank Co., Ltd. are the major players in the China Home Loan Market.

Report Scope:

In this report, China Home Loan market has been segmented into following categories, in addition to the industry trends which have also been detailed below:

• China Home Loan Market, By Type:
• Home Purchase
• Refinance
• Home Improvement
• Construction
• Other
• China Home Loan Market, By End User:
• Employed Individuals
• Professionals
• Students
• Entrepreneur
• Others
• China Home Loan Market, By Tenure Period:
• less than 5 years
• 6-10 years
• 11-24 years
• 25-30 years
• China Home Loan Market, By Region:
• North
• East
• North-East
• South-Central
• North-West
• South-West

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in China home loan market.

Available Customizations:

With the given market data, TechSci Research offers customizations according to a company’s specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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