Guangzhou plans to steadily implement a “move-in-ready” housing sales approach over the next five years, gradually phasing out the current presale system to provide buyers with homes that match what they see during the purchase process.
The recently unveiled five-year housing development plan emphasizes a smooth transition from traditional to modern business models within the real estate market. The city aims to identify suitable projects promptly to trial the new ready-to-occupy homes sales method.
To promote developer participation in the pilot program, local authorities will encourage commercial banks to raise loan limits and offer interest rate discounts for participating projects. Additionally, developers will have the option to pay land costs through installments, supported by public resources.
This new sales approach represents a clear progression for China’s property market, according to a leading housing policy researcher. With growing consumer demand for transparency and quality, this scheme directly addresses those concerns.
The initiative is also expected to shift developer business strategies away from high turnover and rapid expansion. It will lengthen the supply cycle of new homes and help curb the oversupply pressure in certain regions.
However, fully adopting the scheme across all of Guangzhou may not happen immediately. The city is likely to select specific projects—particularly in areas with abundant new housing and downward price pressure—as pilot sites, offering incentives for developers involved.
In China, new homes are typically sold before completion under the presale system, which allows developers to begin sales early to fund construction. While this accelerates building timelines, it also comes with risks: buyers only see blueprints of the homes, increasing the potential for disputes, and some developers have misappropriated presale funds, leading to unfinished properties and frustrated buyers.