China is transitioning to a fully developed-home sales era, emphasizing the importance of local governments actively and systematically promoting move-in-ready home sales to ensure buyers receive what is advertised.
A policy document released on August 28 by the Ministry of Housing and Urban-Rural Development, the Ministry of Natural Resources, and the State Administration of Financial Regulation encourages local authorities to prioritize finished home sales on newly acquired land, as well as on land that has already been sold but has not yet secured construction permits.
Reforming the housing sales framework and tightening oversight of presale funds aim to help developers plan their growth and operations more responsibly, increase awareness of potential risks, and move away from the traditional model of rapid expansion driven by high debt, high leverage, and quick turnover, according to officials during a Q&A session on the central bank’s website.
For prospective homeowners, the most noticeable shift will be moving from the “pay first, move in later” approach toward a model where buyers receive exactly what was promised, industry insiders shared. However, this will also extend developers’ capital recovery timelines, prompting them to reevaluate their development and financing strategies.
Implementing a sales system centered around finished homes is expected to refine purchasing habits and bolster product quality and sales security, stated Yan Yongjin, vice president of a major real estate research institute in Shanghai.
An industry expert mentioned that the real estate market is likely to evolve into a new development model characterized by project-specific financing, completed-home sales, and comprehensive fund supervision.
Traditionally, high leverage and rapid turnover were standard under the presale model, explained Cui Ji, the executive vice president of the same research institute. With a completed-home sales approach, developers will experience longer capital recovery periods, demanding greater financial strength, operational efficiency, and construction capability.
In the short term, turnkey home sales will help reduce inventory in the new home market and support long-term supply-demand balance. This shift may slow down the land-to-market cycle, helping control new supply growth, stabilize prices, and clear existing stock, noted Li Yujia, chief researcher at a housing policy research center in Guangdong.
“Long-term, replacing uniform off-plan properties with distinct, high-quality move-in-ready homes is a sustainable strategy for steadying the housing market,” Li added.
Restoring buyer confidence through completed-home sales is a key benefit, according to Zhang Bo, head of a major real estate research institute. Online platforms have shown increasing concerns among buyers about project delivery times, but the move-in-ready model directly addresses this issue, Zhang explained.
“In the future, developers will base their competitiveness more on their ability to deliver quality homes and meet commitments, further increasing industry differentiation,” Zhang concluded.