The latest steps to rescue China's sagging property sector are among the most high-profile yet, but don't expect a market turnaround, economists say.
Late Tuesday, the People's Bank of China and China Banking Regulatory Commission announced measures to support housing sales and increase lending to cash-strapped property developers.
"These measures are substantial enough to improve sentiment and sales on the property market," Louis Kuijs, chief China economist at RBS wrote in a note.
"[But] we do not expect this package to lead to a rapid recovery of the real estate sector... given the inventories of unsold housing and additional large volumes of housing in construction but not finished hanging over the market," he said.
New measures include granting second-home buyers that have paid off their first mortgage access to lower mortgage rates and lower down-payment requirements. Now they're eligible for a 30 percent discount on mortgage rates, an offer previously limited to first-home buyers. Down payment levels were also cut to 30 percent from 60-70 percent.
In addition, banks were asked to support the funding needs of "quality" developers, increase their access to the bond market and introduce pilot programs for REITs.