Chinese cities implement new real estate sales and land supply regulations

Major Chinese cities, including Beijing, Shanghai, Guangzhou, Wuhan, and Tianjin, are implementing new regulatory measures to reform the residential housing sales system. These policies focus on transitioning from pre-sale models to ready-to-sell (现房销售) models to ensure housing delivery and market stability.

Key provisions across these cities include stricter management of pre-sale funds, requiring structural topping-out before sales can commence for new land projects. The regulations also introduce a lead bank system (主办银行制) to oversee development loans and project funds, ensuring that capital is used specifically for construction.

Regarding land supply, new rules mandate that land auction documents specify whether projects will follow pre-sale or ready-to-sell models. For ready-to-sell projects, developers can collect deposits of up to 5% of the total price, which must be placed in supervised accounts. Transition arrangements have been established for existing projects to manage the shift between old and new regulatory frameworks, with many cities setting August 28, 2026, as a key threshold for policy application.