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China orders local governments to prioritize completed-home sales
The policy package also updates development-loan rules and signals support for listed developers’ mergers and restructurings.
China has unveiled a stronger-than-expected package to stabilize its property sector by steering home sales away from a presales model and toward completed-home sales, according to SCMP Economy.
A notice released Friday instructs local governments to prioritize completed-home sales, and it was jointly issued by the Ministry of Housing and Urban-Rural Development, the Ministry of Natural Resources, and the National Financial Regulatory Administration.
The notice calls for a “vigorous and orderly” rollout of completed-home sales, including for projects tied to newly transferred land and for land already sold but lacking a construction planning permit. It also encourages projects already holding permits to adopt the completed-home sales approach.
SCMP Economy reports that two additional documents released the same day address property financing, with the central bank and the NFRA setting new rules on development loans, and the securities regulator saying it will support listed developers in mergers and restructurings. Pinpoint Asset Management President and Chief Economist Zhang Zhiwei said the policies were stronger than the market expected.