Since 2018, the People's Bank of China has stepped up PSL (collateral supplementary loan) operations to promote the growth of base money and stabilize market expectations. At present, the spread between the PSL operating rate and the mortgage rate has further widened, which will help to increase the enthusiasm of financial institutions and increase the supply of funds in the real estate market.
With the restart of PSL, the real estate market is expected to usher in an inflection point. On the one hand, PSL can increase the supply of funds in the real estate market, reduce the financing cost of real estate development enterprises, and promote the stable development of the real estate market. On the other hand, the launch of PSL will also help promote the structural adjustment of the real estate market, encourage the development of the housing rental market, and promote the diversification and healthy development of the real estate market.
However, the stable development of the real estate market also needs to be accompanied by other policies. For example, there is a need to strengthen the regulation of the real estate market to curb speculation and excessive investment, and at the same time, it is also necessary to promote the reform of the housing system, increase the supply of housing, and improve the level of housing security. Only when these policies are effectively implemented can the real estate market usher in a real inflection point.
In short, the resurgence of PSL will inject new vitality into the real estate market. With the gradual implementation of relevant policies, we have reason to believe that housing prices will gradually return to rationality, and the real estate market will usher in a more healthy and stable development.