Photo taken on Oct. 28, 2024 shows residential buildings in Ankara, Türkiye. Falling prices and a rise in investment potential have sparked a resurgence in Türkiye's housing market amid an improvement in the country's economic indicators, industry insiders said. (Photo: Xinhua)

China's monetary authorities on Wednesday introduced new measures to strengthen the ongoing stabilization of the real estate sector, as China's property market shows growing signs of recovery amid rising transactions this year.

The People's Bank of China (PBC), the central bank, announced on Wednesday that it will lower the interest rates on personal housing provident fund loans by 0.25 percentage points starting Thursday.

The interest rates on personal housing provident fund loans with maturities of five years or less and those with maturities above five years will be adjusted to 2.1 percent and 2.6 percent, respectively, for first-home buyers, and to no lower than 2.525 percent and 3.075 percent, respectively, for second-home buyers, the PBC said in a statement.

The adjustments are expected to save homebuyers more than 20 billion yuan ($2.8 billion) in interest payments per year, which is conducive to supporting the real housing demand of residents and helping the real estate market to further stabilize, PBC Governor Pan Gongsheng told a press conference in Beijing on Wednesday.

Li Yunze, head of the National Financial Regulatory Administration, said at the same press conference that the authorities will accelerate the introduction of a series of financing systems that are compatible with the new real estate development model to help consolidate the stability of the real estate market.

The authorities will also step up efforts to carry out existing policies for effective results, reserve more incremental policies and continuously improve response plans so as to make all-out efforts to consolidate the fundamentals of economic recovery, Li said.

The new policy measures will be important for the development of various sub-sectors under the new development model for the real estate sector, with qualified projects likely to obtain better financial support in the future and better unleash housing demand, Yan Yuejin, research director at Shanghai-based E-house China R&D Institute, told the Global Times on Wednesday.

Financing policies will also help property developers accelerate their pace of reducing debts and digesting inventories for their healthy development, Yan said, noting that China's real estate sector still holds significant growth potential, driven by the ongoing upgrade in consumption and ongoing urbanization.

In March, China's home prices rose in more cities compared with the previous month, as real estate transactions picked up, according to data from the National Bureau of Statistics released on April 16. The figures add to growing evidence that the real estate sector is stabilizing, thanks to the government's stimulus policies announced in recent months aimed at supporting developers and boosting market sentiment, the Xinhua News Agency reported.