Key facts
- China will require developers to complete main building structures before presales.
- New rules mandate developers top out buildings before initiating presales.
- Guidelines prioritize the sale of fully completed, move-in-ready homes for new land parcels.
- The changes aim to mitigate risks in the country's property market.
China has introduced new regulations governing the presale of housing, requiring developers to complete the main structures of residential buildings before selling them off-plan. Issued by the Ministry of Housing and Urban-Rural Development, the Ministry of Natural Resources, and the National Financial Regulatory Administration, these guidelines tighten oversight of a funding model that has been linked to the country's property crisis. The new rules also prioritize the sale of fully completed, move-in-ready homes for all newly auctioned land parcels. These changes are expected to impact real estate developers by affecting their cash flow and potentially increasing project risks, signaling a continued focus by authorities on addressing systemic risks within the sector.