real estate Photo:Xinhua

Real estate regulator in Chengdu city, Southwest China's Sichuan Province announced on Wednesday the raising of the cap of usable pre-sale housing funds to a maximum of 95 percent for developers, aimed at stimulating local property sector.

Analysts suggested that the new policies can ease the current monetary pressure on property developers and avoid on-going real estate projects from a worsening capital crunch, by increasing capital efficiency and speed of loan approving. 

The Chengdu Municipal Housing and Urban-Rural Development Bureau on Wednesday released a notice detailing a series of new measures which would facilitate the completion of annual housing construction goals despite COVID-19. 

The bureau also vowed to shorten the time needed for approving various applications including using paid pre-sale housing funds, property pricing guidance and pre-sale permission. Overall approval time will be shortened by one third from the time set by previous regulation, the notice said. 

To speed up loans issuance, the Chengdu housing supervisor will negotiate with local financial institutions to increase loan scale, reduce loan rates and increasing issuance speed. 

Global Times