From Chengdu to Tianjin, China's big cities fight falling home prices

Metropolises start to feel the pain from flagging property market

A woman cycles past buildings in Tianjin, regarded as a "new first-tier" city in China, just below a metropolis like Beijing or Shanghai. © Reuters

IORI KAWATE, Nikkei staff writer

December 5, 2021 00:10 JST

BEIJING -- China's downturn in housing prices has spread from smaller cities to some of its largest population centers, prompting authorities to try to put a floor under markets that help fill municipal coffers.

Chengdu in southwestern China announced measures to boost financing for property developers and homebuyers alike on Nov. 23. It is urging financial institutions to increase lending limits for developers and homebuyers, and to disburse the loans quickly. Key developers will be allowed to defer repayments or pay lower interest rates.