China issued guidelines on August 28, 2026, requiring local governments to transition housing sales from presale to completed-unit sales to curb delivery risks and protect homebuyers’ rights [1, 2, 3]. The policy mandates that individual buildings must be structurally topped out before qualifying for presales, though projects holding construction permits before the reforms have some leeway [1, 3].
The reform targets social unrest caused by stalled presale projects following the property market crash in 2021. That crash was triggered by government debt curbs that led to cash shortages for developers and halted projects nationwide [1, 3].
The guidelines were jointly issued by the Ministry of Housing and Urban-Rural Development, the Ministry of Natural Resources, and the National Financial Regulatory Administration [2]. They include measures beyond sales practices, such as new rules on development loans enforced by the central bank and NFRA and support for developer mergers and restructurings overseen by the securities regulator [2].
Zhang Zhiwei, president and chief economist at Pinpoint Asset Management, called the policy package “stronger than what the market expected,” signaling a decisive government effort to stabilize the sector [2].
The reform marks a significant step since the 2021 market turmoil and aims to reduce risks for buyers and improve financial discipline in the real estate sector [1, 3].
