Key facts
- China has shifted policy to end the presale of uncompleted homes.
- This policy change has immediately cooled the country's land market.
- Land transaction volume across 70 major cities fell 36% in a single week following the directive.
- Average auction premiums in the land market hit a one-month low.
- State-backed developers are now the primary buyers, focusing on small, low-density parcels.
China's recent policy shift to prohibit the presale of uncompleted homes has had an immediate chilling effect on the country's land market. Following Beijing's directive issued on August 28, land transaction volume in 70 major Chinese cities experienced a sharp 36% decline within a single week. Concurrently, average auction premiums for land parcels fell to a one-month low.