BANKS in China extended 1.9 trillion yuan (US$302 billion) in new property loans in the first quarter of 2018, reflecting still solid demand for housing even as curbs on speculation continue to bite, central bank data showed Friday.

Property loans, comprised mainly of individual mortgages and loans for real estate development, accounted for 38.8 percent of all new loans made in the quarter, media calculated from data from the People’s Bank of China.

The total rose 58 percent from 1.2 trillion yuan in the fourth quarter of 2017, according to media calculations.

The property sector is a key growth driver for the world’s second-largest economy but authorities have made efforts to keep soaring prices in check so that housing is still affordable.

China posted its fastest property investment growth in three years in the first quarter of the year, driven by a surge in land values and as developers grew more confident about the policy outlook. However, sales slowed as limits on home purchases hit transactions.

New home prices rose for the 35th consecutive month in March, with more cities reporting growth as the government supported demand from first-time buyers.

In the first quarter of 2017, lending was 1.7 trillion yuan and sales growth accelerated thanks to a boom in smaller cities where home purchase conditions are less restrictive.

Outstanding property loans rose 20.3 percent by end-March from a year earlier to 34.1 trillion yuan, the central bank said in a quarterly report posted on its website Friday.

Outstanding individual mortgage loans rose 20 percent by end of March to 22.86 trillion yuan.

Individual mortgage loans increased by 99.49 million yuan in the first quarter.

Banks in China extended 1.12 trillion yuan in net new yuan loans in March, rebounding from the previous month but just below expectations, data from the People’s Bank of China showed.

For the quarter, bank lending rose 15 percent year on year, significantly higher than economic growth, though new credit overall added to the economy fell nearly 20 percent from the year-ago period in the midst of the crackdown on risk.

Consumer loans increased by 1.4 trillion yuan in the first quarter of the year, according to central bank data.

Regulators have been cracking down on consumer loans that are being misused for home purchases, warning they cannot be used to “fuel property bubbles.”(SD-Agencies)