Beijing has eased mortgage rules and urged local governments to buy unsold houses in some of policy makers' boldest moves yet to revive the property sector.

Financial regulators said Friday that they would remove the mortgage rate floors for first and second homes, according to official notice. The People's Bank of China also lowered the minimum downpayment ratios for first-time homebuyers to 15% and to 25% for second-home purchases.

Chinese Vice Premier He Lifeng also said Friday that authorities in cities with excess home inventories should buy unsold property and turn it into affordable housing. He also called on local governments to recycle idle land parcels held by property developers to ease their financial strain.

He asked local authorities to continue to prevent risks in the real-estate sector, while looking to increase the supply of affordable housing, renovate so-called shantytowns and develop urban infrastructure.

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(END) Dow Jones Newswires

05-17-24 0216ET