Key facts
- China has issued new guidelines for local governments to reform the housing sales system.
- The reform mandates a shift from selling pre-construction units to selling completed homes.
- This move aims to address delivery risks and stabilize the country's crisis-hit property sector.
China has introduced new guidelines aimed at reforming its housing sales system, signaling a significant shift away from the prevalent practice of selling pre-construction units. The directive, issued by the central government to local authorities, mandates a move towards the sale of completed housing units. This strategic change is intended to curb delivery risks that have plagued the country's property sector, which has been grappling with a severe debt crunch. By ensuring that homes are sold only after completion, Beijing seeks to restore confidence and stabilize the market, addressing concerns over unfinished projects and developer defaults.