Timing not right for China home-sales overhaul: state media
THE timing for a nationwide housing market reform that would only allow developers to sell completed properties is 'not mature', according to China Real Estate Business, an outlet managed by China's Ministry of Housing and Urban-Rural Development.
At least 30 cities in China have released documents on testing the idea of only permitting sales once units are finished, but a rush to implement such an overhaul at a national level would put operational pressure on local builders and subdue interest in land auctions, the state media said in an article posted on its official Wechat account on Sunday (May 18) morning. The post was removed in the afternoon.
Successful measures to boost home sales still require more testing in different cities, with support from the financial system and tax policies, the article said.
Bloomberg reported earlier this month that China is mulling a dramatic shift in its current home-sales model across the country, requiring developers to offer only completed properties instead of using the pre-sales model that exacerbated the housing crisis, according to people familiar with the matter.
China has been trying to revive its property sector after a years-long meltdown, which has weighed on broader consumption and employment. While the housing sector has picked up modestly on the back of government support, upticks are mostly in the resale market, as buyers remain concerned about developers' ability to finish projects on time. BLOOMBERG
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