Core Viewpoint - The transition to a "current housing sales" system is being emphasized to fundamentally prevent delivery risks, marking a significant upgrade in the status of current housing sales compared to previous years [1][4]. Group 1: Current Housing Sales Policy - The national housing and urban-rural construction work conference has highlighted the need to promote current housing sales, aiming for a "what you see is what you get" approach to mitigate delivery risks [1]. - The shift from a pre-sale system, which has been in place for over 30 years, to a current housing sales model is a complex process due to the historical significance of the pre-sale system in rapidly expanding housing supply and urbanization [1][5]. Group 2: Impact on Developers - Current housing sales will directly impact developers' cash flow, as they will need to invest all construction funds upfront and will only recover costs after project completion, extending the cash recovery period from months to two to three years [2][4]. - This change raises the industry entry barrier, requiring developers to enhance their financial strength, project management, and cost control capabilities [2]. Group 3: Market Dynamics - In the short term, the implementation of current housing sales may lead to a decline in new housing supply due to extended development cycles, but long-term adjustments in policy are expected to balance supply and demand [4]. - The current housing sales model allows buyers to physically inspect properties, leading to more cautious decision-making and a reduction in speculative behavior, which can stabilize market prices and improve supply-demand structure [4]. Group 4: Financial Innovations - To alleviate long-term financial pressures on developers, there is a need for innovative financial tools such as "current housing development loans" and adjustments in land transfer payment conditions [4].

Core Viewpoint - The shift towards "existing house sales" is a significant upgrade in the real estate sector, aimed at fundamentally preventing delivery risks and enhancing buyer confidence [1][3]. Group 1: Current Policy Changes - The national housing and urban-rural development meeting emphasized the promotion of existing house sales, marking a departure from the previous year's focus on "orderly promotion" of this model [1]. - The transition from a pre-sale system, which has been in place for over 30 years, is challenging due to its historical role in rapidly expanding housing supply and urbanization [1]. Group 2: Impact on Developers - The existing house sales model directly impacts developers' cash flow, as they must invest all construction funds upfront and wait until project completion to recoup costs, extending the cash cycle from months to two or three years [2]. - This shift raises the industry entry barrier, requiring developers to enhance their financial strength, project management, and cost control capabilities [2]. Group 3: Market Dynamics - In the short term, the transition to existing house sales may lead to a decline in new housing supply due to extended development cycles [4][5]. - However, in the long term, the market is expected to achieve a balance through policy adjustments, with a focus on rational buyer behavior and reduced speculative activities [5]. - The "seeing is believing" approach of existing house sales helps eliminate risks associated with unfinished projects, allowing buyers to assess quality directly and reducing disputes [5]. Group 4: Financial Innovations - Recommendations include developing financial products tailored to existing house sales, such as "existing house development loans" and adjusting land transfer payment conditions to alleviate developers' financial pressures [5].

Core Viewpoint - The real estate market in China is undergoing a significant transformation, moving away from the traditional "pre-sale" model towards a "current sale" approach, reflecting a shift in consumer sentiment and regulatory changes [1][3][7]. Summary by Sections Background of Pre-sale System - The pre-sale system, known as "buying off-plan," was introduced in China in 1994 and has been a crucial financing channel for developers, historically accounting for over 20% of their funding sources [4][5]. - This model allowed developers to alleviate financial pressure and provided consumers with lower prices for future properties [4]. Emergence of Current Sale Model - The shift towards current sales began with Hainan Province in 2020, which abolished the pre-sale system, leading to over 30 provinces and cities adopting similar policies [7][8]. - Recent data shows that the proportion of current sales has increased significantly, from 12.7% in 2020 to 30.84% in 2024, with recent figures reaching 36% [10][20]. Policy Changes and Implementation - The recent policy from Xinyang City mandates that new residential projects must be sold as completed properties, reflecting a broader national trend [3][10]. - The central government has recognized the need to reform the pre-sale system, making it a priority for future housing policies [8]. Challenges for Developers - The transition to current sales poses significant challenges for developers, including increased capital requirements and longer project timelines, which could lead to financial strain [14][16]. - Developers now face a longer sales cycle, extending from 6-18 months to 18-36 months, increasing their financial risk [14]. Consumer Sentiment and Market Dynamics - The shift in sales models is driven by changing consumer attitudes, particularly in light of recent financial difficulties faced by developers, leading to a preference for purchasing completed homes [12][20]. - The current sales model is expected to reshape consumer behavior, moving from speculation to a focus on tangible property quality [12][20]. Gradual Reform Approach - Experts advocate for a gradual reform approach to avoid market disruption, suggesting that both pre-sale and current sale models may coexist in the near future [16][18]. - The implementation of supportive policies, such as deposit systems and tax incentives for current sales, is crucial for facilitating this transition [20].

Core Insights - The proportion of completed housing sales is significantly increasing in various cities, particularly in Shenzhen, where the share of completed sales reached 30.9% in the first half of 2025, up 6.3 percentage points from the second half of 2024, and only 14.6% in the first half of 2023 [2][3] Group 1: Current Market Trends - The trend towards completed housing sales is driven by longer sales cycles for new properties, leading some pre-sale projects to transition to completed sales [2][3] - In June 2025, the proportion of completed housing sales in Shenzhen reached 42%, indicating a strong market shift [2] - The increase in completed sales is also attributed to policy support advocating for "guaranteed delivery" and the promotion of completed housing sales [3][4] Group 2: Policy and Regulatory Environment - Various regions are actively exploring and implementing policies to promote completed housing sales, with some cities mandating that newly sold land must be for completed properties [4] - The proportion of completed housing sales in total residential sales has risen from 10.4% in 2021 to 18.7% in 2023, reflecting a growing trend [4] - In the first half of 2024, the area sold as completed housing increased by 23% year-on-year, while pre-sale housing sales decreased by 31% [4] Group 3: Market Dynamics - The shift towards completed housing sales is influenced by a combination of policy direction, market logic, and the developmental stage of the industry [5] - Completed housing sales require developers to bear the full financial burden until project completion, increasing both capital and time costs [5]

Core Viewpoint - The article highlights the increasing trend of selling completed properties (现房) in various cities, particularly in Shenzhen, where the proportion of completed property sales has significantly risen, indicating a shift in market dynamics and consumer preferences [2][4][8]. Group 1: Current Market Trends - The proportion of completed property sales in Shenzhen has increased dramatically, with 30.9% of new residential sales being completed properties in the first half of 2025, up from 14.6% in the first half of 2023 [4]. - In June 2025, the completed property sales proportion reached 42%, reflecting a growing consumer preference for immediate occupancy [4]. - The rise in completed property sales is partly due to longer sales cycles for new properties, leading some pre-sale projects to transition to completed sales [4][5]. Group 2: Policy and Industry Response - Various cities are actively promoting completed property sales, with supportive policies being developed. For instance, in May 2023, the housing authority in Xinyang, Henan Province, mandated that all newly sold land must be for completed properties [8]. - The share of completed properties in total residential sales has increased from 10.4% in 2021 to 18.7% in 2023, with a notable increase in completed property sales area by 23% year-on-year in the first half of 2024 [8]. - Industry experts suggest that the shift towards completed property sales is influenced by policy direction, market logic, and the current stage of industry development, although it requires developers to bear the full financial burden until project completion [9].

Core Viewpoint - The recent policy from the Housing and Urban-Rural Development Bureau of Xinyang, Henan Province, mandates that all newly developed commercial housing must be sold as completed properties, reigniting discussions on the implications and challenges of "existing house sales" in the real estate market [1][2]. Policy Developments - Existing house sales refer to the sale of properties that have been completed and meet legal delivery conditions, allowing buyers to occupy and register ownership immediately after the transaction [1]. - Since the end of 2022, various regions in China have been implementing policies to promote existing house sales, with notable examples in Anhui and Hubei where pilot projects have seen high sales rates [2]. - Xinyang's new policy is the first to comprehensively implement existing house sales in a city, distinguishing between new and old projects regarding pre-sale permissions [2]. Market Dynamics - The shift towards existing house sales is driven by the need to mitigate risks, reduce inventory, and control supply in the real estate market [2][4]. - The proportion of existing house sales in new housing has been steadily increasing, reaching 36% in the first quarter of this year [5]. - The transition to existing house sales is seen as a necessary evolution towards a more mature and stable real estate market that prioritizes risk control and buyer protection [3][6]. Industry Implications - Existing house sales require developers to invest fully in projects before recovering funds, increasing financial and time costs compared to pre-sale models [3]. - The focus on existing house sales is expected to enhance product quality as developers strive to attract buyers, thereby improving overall market standards [4]. - The current trend indicates a gradual coexistence of existing and pre-sale models, with existing house sales likely to dominate in the future [6][7]. Global Context - The global real estate market exhibits diverse sales models, with a common trend towards stricter regulation of pre-sale activities and enhanced buyer protection [7]. - The evolution of the real estate market in China reflects a broader movement towards ensuring safer transactions and better meeting housing demands through improved regulatory frameworks [7].