Core Insights - Guangzhou's real estate market is transitioning to a "mainly existing homes" phase, with existing home inventory surpassing pre-sold homes for the first time, indicating a significant structural change in the market [1][3][4] Market Trends - As of mid-2025, the available inventory of residential properties in Guangzhou is 14.47 million square meters, with existing homes accounting for 7.42 million square meters (51.3%) and pre-sold homes at 7.05 million square meters (48.7%) [3] - Nationwide, existing home sales area reached 163 million square meters in mid-2025, a year-on-year increase of 12.5%, while pre-sold home sales decreased by 10.6% to 296 million square meters [3] Consumer Preferences - The preference for existing homes is driven by the "seeing is believing" principle, as buyers seek certainty in delivery and wish to avoid risks associated with pre-sold homes, such as project delays and quality issues [3][4] Regional Supply - Existing home projects are now available across all districts in Guangzhou, including key areas like Tianhe and Huangpu, with some projects already in the delivery phase, allowing for immediate occupancy [4] Policy and Market Dynamics - The increase in existing home inventory has sparked discussions on optimizing the pre-sale system, as current practices place significant risk on buyers [5][6] - Experts suggest that a balanced risk-sharing mechanism is needed, where the risks associated with home purchases are more evenly distributed between developers and buyers [5] Implementation of New Sales Models - Cities like Xinyang have begun implementing a "pay and receive" model for existing home sales, with over 30 provinces in China introducing related policies since late 2022 [6] - Guangzhou is considering pilot programs for existing home sales in areas with high inventory, while also addressing the need for developers to adapt to changing market conditions [6]