Core Viewpoint - The acceleration of "existing house sales" is being implemented across at least 32 provinces and cities in China since 2024, which will have profound impacts on real estate companies and local governments [1][4]. Group 1: Policy Implementation - The central government has prioritized the promotion of existing house sales as a key policy agenda, emphasizing its role in preventing delivery risks [3][4]. - By the end of 2024, the policy will be fully implemented, marking a significant shift in the housing market dynamics [3][4]. Group 2: Impact on Real Estate Companies - Existing house sales will increase financial pressure on developers, requiring them to adapt their financing models as they can only recoup funds after project completion [9]. - The development cycle will lengthen, compelling companies to focus more on quality and customer needs in project planning and execution [9]. - The shift to existing house sales will accelerate the consolidation of the industry, favoring larger firms while putting smaller companies at greater risk [9][11]. Group 3: Changes in Business Models - Companies are likely to transition towards lighter asset models, increasing their focus on construction and management services rather than heavy investment in land acquisition [11][12]. - The proportion of residential construction projects is expected to rise, with more firms entering the construction management sector [11][13]. Group 4: Market Dynamics - The penetration rate of construction management in first-tier cities is expected to increase, while second-tier cities will remain stable and third- and fourth-tier cities may experience a decline [17]. - The existing house sales model will lead to a more competitive environment in the construction management sector, with larger firms dominating the market [21]. Group 5: Financing and Payment Structures - The existing house sales model will necessitate changes in payment structures for construction management projects, linking payments more closely to project milestones rather than sales revenue [20][21]. - Companies will need to collaborate with local governments to secure land and mitigate financial constraints, leading to a rise in joint ventures and partnerships [20].

Core Viewpoint - The implementation of "existing house sales" is a crucial step in constructing a new model for real estate development, aimed at enhancing buyer protection and product quality while promoting high-quality industry growth [1] Group 1: Current Practices and Policies - Over 30 provinces and cities in China have introduced policies related to existing house sales since the end of 2022, with pilot projects in cities like Hefei, Zhengzhou, and Changsha [2] - The first pilot project in Jingmen City, Hubei Province, successfully sold all 106 units on the opening day [3] - Local governments are actively promoting existing house sales through measures such as providing tax subsidies for buyers and optimizing pilot projects [4] Group 2: Market Trends and Statistics - The proportion of existing house sales area has been increasing, with approximately 300 million square meters sold in 2024, accounting for 30.84% of total new housing sales, up from 22.5% in 2023 [5] - In the first three months of this year, existing house sales area reached 79 million square meters, a year-on-year increase of 14.3%, with a share of 36% in new housing sales, up from 30.6% in the same period last year [6] Group 3: Advantages and Challenges of Existing House Sales - Existing house sales reduce buyer risks, enhance market transparency, and boost consumer confidence, allowing buyers to assess property quality directly [7] - The model requires real estate companies to manage funding differently, as they must finance the entire project until completion, leading to increased financial pressure [9] - Stronger product design and brand influence will provide greater opportunities for companies in the existing house sales model [10]

Core Viewpoint - The acceleration of the "immediate delivery" housing sales model in China is being driven by recent policy reforms aimed at enhancing the real estate market, with a notable increase in the proportion of existing home sales reaching a decade-high of 32.16% in early 2025 [2][9][12]. Group 1: Policy Developments - The national housing and urban-rural development conference in December 2024 emphasized the need to reform the commodity housing sales system and promote immediate delivery sales [1][7]. - As of May 2025, the Housing and Urban-Rural Development Bureau of Xinyang, Henan, mandated that all newly developed commodity housing on newly sold land must adopt the immediate delivery sales model [4][6]. - At least 32 provinces and cities have initiated pilot programs for immediate delivery sales since 2024, although comprehensive implementation remains challenging [3][8]. Group 2: Market Trends - The proportion of immediate delivery sales in China rose to 32.16% in early 2025, up from 26.97% in 2024, marking a significant recovery from a low of 10.16% in 2020 [2][9]. - The increase in immediate delivery sales is largely attributed to a shift in buyer preferences due to market conditions, with many existing homes being sold as a result of unsold inventory rather than proactive choices by developers [12][16]. Group 3: Economic Implications - The transition to immediate delivery sales is expected to lengthen the cash flow cycle for projects, impacting profitability, particularly for high-end developments [15][17]. - The current market environment is characterized by a contraction phase, with policies focusing on optimizing existing inventory and enhancing quality in the housing sector [16][18].

Core Viewpoint - The topic of "immediate housing sales" has gained market attention as multiple regions actively pilot this approach, with supporting policies continuously improving, leading to a steady increase in market share [1][3]. Group 1: Background and Development - The pre-sale system for commercial housing originated in Hong Kong and was introduced to mainland China in the 1990s, becoming mainstream and helping real estate companies quickly recover funds and enhance development efficiency [3]. - However, as the market evolved, issues such as delivery risks and quality disputes associated with the pre-sale system became prominent, prompting the pilot of immediate housing sales to cool down land acquisition during market overheating and ensure delivery amid industry risks [3]. Group 2: Regional Pilot Programs - Hainan was the first province in China to implement immediate housing sales policies at the provincial level, mandating that newly sold land for residential construction must adopt this sales method since March 2020 [3]. - Beijing expanded the pilot scope for immediate housing sales in concentrated land auctions starting in 2021, and after optimizing the concentrated land supply system in 2023, some plots still included a "competitive immediate housing sales" segment [3]. - Shenzhen restarted its exploration of immediate housing sales in August 2023, with plans for all plots to require immediate sales by October 2024 [3]. Group 3: Policy Support - Both central and local governments are collaboratively supporting the pilot of immediate housing sales, with over 30 provinces and cities initiating trials or issuing supportive policies since the end of 2022 [3]. - Cities like Hefei and Zhengzhou have explicitly defined pilot projects, while places like Ganzhou, Jiujiang, and Shandong have introduced measures such as extending land transfer payment deadlines, tax subsidies, and increasing public housing loan limits [3]. - The concept of immediate housing sales was systematically proposed for the first time at the national housing and urban-rural development work conference in January 2023, with several provinces like Shandong and Anhui confirming their pilot programs [3]. Group 4: Market Data and Trends - The proportion of immediate housing sales is gradually increasing, with the National Bureau of Statistics reporting that the sales area for immediate housing in 2024 is approximately 300 million square meters, a year-on-year increase of 19.1%, accounting for 30.84% of total sales [4]. - The market share for immediate housing sales from 2020 to 2023 was recorded at 12.7%, 13%, 17.3%, and 22.5% respectively [4]. Group 5: Industry Implications - The director of 58 Anjuke Research Institute, Zhang Bo, believes that immediate housing sales represent a significant trend for the future of the real estate incremental market and are crucial for promoting high-quality transformation of real estate companies, although comprehensive implementation requires multi-dimensional supporting reforms [4]. - Currently, the timing for full implementation is deemed immature, as rapid execution may elevate market risks and impact the industry negatively [4]. - For real estate companies, immediate housing sales extend the capital recovery cycle and increase pressure, potentially reducing new housing supply in the short term and delaying market recovery [4]. - In the long run, immediate housing sales are expected to enhance product quality, compel companies to optimize design, materials, and amenities, and promote industry competition, accelerating consolidation within the sector [4].