Core Viewpoint - The recent regulatory measures across various cities in China aim to address the issue of "stealing area" in real estate, promoting fair competition among developers and enhancing the quality of housing products rather than merely focusing on high utility rates [2][3][6] Regulatory Measures - New regulations include standardizing window designs, incorporating all structural columns into area calculations, limiting the functionality of flower beds on floors above 40 meters, and standardizing internal courtyard dimensions to prevent the reduction of space for more units [2][3] - In Chengdu, the new guidelines stipulate that the increase in "board rate" must not exceed 1.5%, and height discrepancies are limited to 0.15 meters to prevent developers from illegally expanding usable space [2][3] Market Trends - The introduction of high utility rate properties has been a response to market demands, with cities like Chengdu and Guangzhou launching new plots designed to maximize usable space [4][5] - For instance, Chengdu's Wanke project offers units with a maximum usable area rate of 113%, while Guangzhou's new regulations allow for a 20% inclusion of semi-open spaces in the total area calculation [5][6] Industry Response - Developers are expected to shift focus from merely achieving high utility rates to enhancing product quality and service, fostering a healthier competitive environment in the real estate sector [3][6][7] - The market is anticipated to evolve towards a more rational approach, emphasizing product design and planning over just high utility rates, which aligns with consumer expectations for better living conditions [6][7] Future Outlook - The ongoing regulatory changes are seen as a step towards promoting transparency in transactions and encouraging developers to innovate within compliance frameworks, ultimately leading to a focus on quality in housing construction [7][8]

Core Viewpoint - The recent regulatory measures across various cities aim to address the issue of "area theft" in real estate, promoting fair competition among developers and enhancing the overall quality of housing products [2][3][6]. Regulatory Changes - New regulations have been introduced to standardize the design of bay windows, include structural columns in area calculations, limit the functionality of flower beds on higher floors, and standardize internal courtyard dimensions to prevent developers from illegally increasing usable space [2][3]. - For instance, in Chengdu, the new guidelines stipulate that the increase in "board rate" must not exceed 1.5%, and height discrepancies are limited to 0.15 meters to prevent developers from expanding space through illegal modifications [2]. Market Dynamics - The measures are intended to level the playing field for real estate companies, encouraging them to focus on product quality and service rather than merely maximizing usable area [3][6]. - The introduction of high-utilization new properties in several cities has shifted market trends, with developers now incentivized to create designs that enhance living experiences rather than just increasing usable space [4][6]. Project Examples - Chengdu and Guangzhou have begun to release plots that can create high-utilization residential properties, with some projects achieving usable rates exceeding 120% [4][5]. - For example, the Wanke project in Chengdu offers units with a usable rate of up to 113%, while the Yuexiu project boasts a rate of 120% [4]. Future Outlook - The emergence of new regulations is seen as a response to market demands for better housing quality, with a focus on transparency and comprehensive evaluation of properties beyond just usable area [6][7]. - The industry is expected to shift towards a model that prioritizes product design and service quality, fostering a healthier market environment and enhancing the overall living experience for residents [6][7].