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Harbin cuts real estate agency fees

Updated : 2014-12-13

By Pan Qi ( chinadaily.com.cn )

The price range of real-estate agency fees was cut down to no more than 0.5 percent from 0.5-1.5 percent of the housing transaction price, according to an official document released by the housing bureau and the development and reform commission of Harbin, capital of Northeast China’s Heilongjiang province, on Dec 10.

The agency fee for renting houses was also reduced to less than half a month’s rent compared to a month’s rent rang previously.

Insiders believe the move was another shot in the arm for the weakening real estate market.

After experiencing a downturn in the property market in the first three quarters, the People's Bank of China, the nation’s central bank, and the China Banking Regulatory Commission made an announcement that homebuyers can enjoy the same privileges of a first mortgage if they are making a second purchase, as long as the buyer has paid off the first loan.

On Nov 21, the central bank unexpectedly announced the 40-basis-point lending rate cut.

Thanks to the rate cut, the benchmark rate for five-year and longer loans fell to 6.15 percent from 6.55 percent, which means that a typical homebuyer who borrows 1 million yuan ($163,000) under a 20-year repayment term will pay 234 yuan less per month.

More cuts are expected because “if the latest rate cut is not followed by more cuts in the coming months, the thaw could be short-lived as inventories, even in first-tier cities, are high”, according to Bai Yanjun, chief analyst at the China Index Academy.
 

 

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