China’s Crackdown on Housing Presales to Boost Market Confidence

China has introduced a series of measures aimed at reducing property developers’ reliance on presales to fund housing projects, signaling a move to stabilize the crisis-hit real estate sector. The presale model, long used by Chinese developers, has come under scrutiny following project delays and cash shortages in the aftermath of the 2021 market downturn. The new guidelines mandate that a homebuyer’s mortgage can only be issued after the completion of the project, in an effort to address delivery risks and restore trust in the market. The policies, jointly released by the central bank and financial regulator, aim to mend…