China Home Mortgage Finance Market Size (2024 - 2029)

The Chinese home mortgage finance market is experiencing a downturn, characterized by declining house prices, reduced real estate purchases, and increasing mortgage defaults. The market's contraction is exacerbated by the COVID-19 pandemic's impact on financial stability, with mortgage debt becoming a critical burden for homeowners. As economic uncertainty prompts households and businesses to limit debt, the potential for a balance sheet recession looms, further straining the market. This environment poses significant challenges for lenders, affecting their profitability and liquidity due to changes in loan originations, repayment schedules, and default rates.

Home Market Analysis Financial Services and Investment Intelligence Research Banking and Non Bank Finance Research Loans and Leasing Research Mortgage Lending Research Home Mortgage Finance Research China Home Mortgage Finance Market Market Size

Market Size of China Home Mortgage Finance Industry

China Home Mortgage Finance Market Summary
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

China Home Mortgage Finance Market 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 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
Need A Different Region Or Segment?
Customize Now

China Home Mortgage Finance Market Size Summary

The Chinese home mortgage finance market is currently experiencing a downturn, transitioning from a period of rapid growth to a more challenging phase. This shift is characterized by declining home prices, reduced real estate purchases, and a slowdown in construction activities, all contributing to an increase in mortgage defaults. The market's health is further compromised by the lingering effects of the COVID-19 pandemic, which exacerbated financial strains on individuals and households, making mortgage debt a significant burden. As economic uncertainty looms, both consumers and businesses are becoming more cautious, potentially leading to a balance sheet recession that could intensify the mortgage crisis. In response to these challenges, the Chinese government has implemented measures such as cutting benchmark interest rates and easing mortgage costs to stimulate demand and support the housing market.

Despite the current challenges, the market holds potential for recovery, supported by government interventions and favorable lending conditions. The central bank's interest rate cuts and relaxed property ownership rules aim to encourage lending and boost homebuyer confidence. With residential property representing a substantial portion of household wealth and bank loan books, the market's recovery is crucial for the broader economy. The government's commitment to providing special loans for stalled housing projects further underscores its efforts to stabilize the market. The Chinese home mortgage finance sector remains dominated by a few large banks, with residential mortgages constituting a significant portion of their lending portfolios. These strategic measures and the market's inherent strengths are expected to foster growth in the coming years.

Explore More

China Home Mortgage Finance Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Porter's Five Forces Analysis

      1. 1.4.1 Bargaining Power of Buyers/Consumers

      2. 1.4.2 Bargaining Power of Suppliers

      3. 1.4.3 Threat of New Entrants

      4. 1.4.4 Threat of Substitute Products

      5. 1.4.5 Intensity of Competitive Rivalry

    5. 1.5 Impact of COVID-19 on the Market

    6. 1.6 Technological Advancement

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Types of Lenders

      1. 2.1.1 Banks

      2. 2.1.2 House Provident Fund (HPF)

    2. 2.2 By Financing Options

      1. 2.2.1 Personal New Housing Loan

      2. 2.2.2 Personal Second-hand Housing Loan

      3. 2.2.3 Personal Housing Provident Fund (Portfolio) Loan

    3. 2.3 By Types of Mortgage

      1. 2.3.1 Fixed

      2. 2.3.2 Variable

China Home Mortgage Finance Market Size FAQs

The China Home Mortgage Finance Market is projected to register a CAGR of less than 4% during the forecast period (2024-2029)

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.

China Home Mortgage Finance Report Snapshots

China Home Mortgage Finance Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)