China Home Mortgage Finance Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | < 4.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
China Home Mortgage Finance Market Analysis
The Chinese home mortgage finance market is poised to register a CAGR of 4% in the upcoming five years.
The Chinese home mortgage finance market was once booming but is now on the verge of a slump. Many homes in China are sold even before they are fully built, which is an important source of income for the developers and often allows them to take on multiple projects at once. At the moment, house prices are falling sharply, people are buying less real estate, construction is slowing down quickly, and mortgage defaults are going up, all of which are bad signs for this market.
The COVID-19 pandemic had a negative impact on the home mortgage finance market in China. The financial services industry and the wealth and debt levels of people were getting worse over time. For individual homeowners, mortgage debt was the single largest source of debt and had the most significant effect on their finances and their ability to stay solvent through wage decrease or wage losses. Most of the time, mortgages are the most important asset on a lender's retail banking book. Changes in originations, repayment schedules, and default rates will have a big effect on the lender's ability to make money and stay liquid.
As households and businesses start to worry about the recession and become less willing to take on more debt, they are more likely to cut back on spending and investing. This could lead to a balance sheet recession and speed up the mortgage crisis in China. Also, with less money to spend, it would be harder and harder for homebuyers to pay off their debt. This will create even more loan delinquencies and put more pressure on outstanding mortgages.
China Home Mortgage Finance Market Trends
Favorable Mortgage Rates is Expected to Drive the Market
Due to the surge in the current property crisis in China, the country's central bank is cutting its benchmark interest rate for mortgages to tackle this situation. Loans for pre-owned homes can be taken out at interest rates below 5 percent for first-time homebuyers in cities including Shanghai, Guangdong province's Shenzhen, Heilongjiang province's Harbin, and Jiangsu province's Suzhou.
Home loans account for about one-fifth of the total bank loans in China, and with the falling interest rates, loans are being approved more quickly. Low-interest rates are an advantage for people who wish to buy a house through a loan. It takes about one month for applicants to receive their loans in the nation's 103 cities, including 19 cities that take less than 20 days. Almost 70 percent of the country's household wealth is stored in residential property, along with 30 to 40 percent of bank loan books, while land sales account for 30 to 40 percent of local government revenue. This is expected to grow the market during the forecasted period.
Government Regulations Boost the Market Growth
The government has eased mortgage costs through cuts in interest rates, relaxed some rules on ownership of multiple properties, and urged banks to lend more to homebuyers. This, in turn, is expected to boost overall lending in China. These measures taken by the government are aimed at reviving housing loan demand while keeping a tight grip on developers' leverage, highlighting the delicate balancing act Beijing has faced since the downturn in the property sector last year.
The government of China will offer 200 billion yuan (USD 29.3 billion) in special loans to ensure stalled housing projects are delivered to buyers; this will lead to the growth of this market during the forecasted period.
China Home Mortgage Finance Industry Overview
The China home mortgage finance market is a consolidated market with six large banks dominating the market, with about 75% of bank lending as residential mortgages, mostly on new build developments and overwhelmingly flats. Some of the major players in this market are China Construction Bank, Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, and HSBC.
China Home Mortgage Finance Market Leaders
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China Construction Bank
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Industrial and Commercial Bank of China
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Agricultural Bank of China
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Bank of China
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HSBC
*Disclaimer: Major Players sorted in no particular order
China Home Mortgage Finance Market News
- October 2022: HSBC expands China's private banking network and launches in two new cities.
- September 2022: China Construction Bank Corp., one of the country's four largest state-owned lenders, will set up a 30-billion-yuan (USD 4.2 billion) fund to buy properties from developers. The move comes even as policymakers take steps to contain a real estate crisis weighing on the economy.
China Home Mortgage Finance Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Buyers/Consumers
4.4.2 Bargaining Power of Suppliers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
4.5 Impact of COVID-19 on the Market
4.6 Technological Advancement
5. MARKET SEGMENTATION
5.1 By Types of Lenders
5.1.1 Banks
5.1.2 House Provident Fund (HPF)
5.2 By Financing Options
5.2.1 Personal New Housing Loan
5.2.2 Personal Second-hand Housing Loan
5.2.3 Personal Housing Provident Fund (Portfolio) Loan
5.3 By Types of Mortgage
5.3.1 Fixed
5.3.2 Variable
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 China Construction Bank
6.2.2 Industrial and Commercial Bank of China
6.2.3 Agricultural Bank of China
6.2.4 Bank of China
6.2.5 HSBC
6.2.6 Bank of Communications
6.2.7 Postal Savings Bank of China*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
China Home Mortgage Finance Industry Segmentation
Home mortgage finance will back a loan to buy a house with a guarantee, also called collateral. They are used to buy a home or borrow money against the value of your home. A bank, mortgage company, or financial institution to purchase a primary residence, a secondary residence, or an investment residence.
The China home mortgage finance market is segmented by type of lender (banks and House Provident Fund [HPF]), by financing options (personal new housing loan, personal second-hand housing loan, and personal Housing Provident Fund (Portfolio) Loan), and by type of mortgage (fixed and variable). The report offers market size and forecasts for the China Home Mortgage Finance Market in value (USD million) for all the above segments.
| By Types of Lenders | |
| Banks | |
| House Provident Fund (HPF) |
| By Financing Options | |
| Personal New Housing Loan | |
| Personal Second-hand Housing Loan | |
| Personal Housing Provident Fund (Portfolio) Loan |
| By Types of Mortgage | |
| Fixed | |
| Variable |
China Home Mortgage Finance Market Research FAQs
What is the current China Home Mortgage Finance Market size?
The China Home Mortgage Finance Market is projected to register a CAGR of less than 4% during the forecast period (2024-2029)
Who are the key players in China Home Mortgage Finance Market?
China Construction Bank, Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China and HSBC are the major companies operating in the China Home Mortgage Finance Market.
What years does this China Home Mortgage Finance Market cover?
The report covers the China Home Mortgage Finance Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the China Home Mortgage Finance Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
China Home Mortgage Finance Industry Report
Statistics for the 2024 China Home Mortgage Finance market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. China Home Mortgage Finance analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
