Residential buildings in Beijing. The average price last year for second-hand housing in China's capital was 60,925 yuan per square meter, down 3.3% from a year earlier. Photo: iStock

Some Chinese banks have cut mortgage interest rates in major cities with high demand for homes, including Beijing, Guangzhou, Hangzhou and Foshan, the 21st Century Business Herald reported.

This is the first time that several cities have experienced a simultaneous reduction in mortgage interest rates since last year, when a series of tightened regulations were launched to rein in rising house prices.

According to a real estate agent in Guangzhou, since October, the big four state-owned banks have lowered interest rates on first home loans.

It is now 10% above the 4.9% benchmark interest rate, compared to the previous 15% above the benchmark rate.

Insiders in the real estate sector think that mortgage rates have reached a peak and will now enter a downturn cycle.

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