Over 30% of commercial housing has been sold as ready stock, and housing consumption will shift from 'gambling on expectations' to 'checking the physical goods'.

Author: Mayi Fan

Sales of Ready-Made Houses Are Coming Soon!

Against the backdrop of the explicit promotion of high-quality real estate development in the 15th Five-Year Plan, the Ministry of Housing and Urban-Rural Development has recently proposed six key tasks, including establishing a housing security wait

Over the past 30 years, many home buyers have experienced the anxiety of purchasing based on plans. They spend their life's largest consumer expenditure solely on the basis of floor plans and sand models, and during the long waiting period, they have

All of this may become history.

According to Kerui data, since 2019, the proportion of commercial residential existing home sales area has increased from 10% to 33% at the beginning of this year. More than 30 provinces (cities) across the country have launched pilot projects for ex

In multiple pilot projects, the sale of spot real estate with the slogan of getting the property certificate immediately upon delivery and seeing is believing has been very popular, and some projects are sold out immediately after launch. Industry ex

Over 30% of commercial housing is now sold as ready-built properties

The pre-sale system of commercial housing, which has been implemented for more than 30 years since 1994, may gradually withdraw from the historical stage in China.

Recently, the 15th Five-Year Plan was released, with multiple explicit discussions on real estate throughout the document. The core content includes promoting high-quality development of the real estate industry, accelerating the establishment of a n

Since then, the Tutorial Reader of the Central Committee of the Chinese Communist Party's Suggestions for the 15th Five-Year Plan for National Economic and Social Development published an article with the signature of Ni Hong, the Minister of Housing

This also means that the real estate industry will fully shift from a large-scale development model to a high-quality development path. A series of measures, represented by promoting spot sales, will help reduce systemic risks and become the core tas

Actually, as early as 2014, about 20 years after the implementation of the commercial housing pre-sale system, some cities started a pilot project of selling completed properties in advance to buyers immediately upon purchase as real estate was devel

In Huangpu District of Shanghai, for example, a plot of land sold in 2014 required for the first time that the completed buildings be sold as fully furnished and ready-to-move-in properties.

Hainan is the first province in China to promote the spot sale policy at the provincial level. Hainan Province stipulates that from 2020, spot sale systems shall be fully implemented for commercial housing constructed on newly-transferred land parcel

At the end of 2024, the National Housing and Urban-Rural Development Work Conference clearly listed the promotion of spot sales as one of the key tasks of the Ministry of Housing and Urban-Rural Development in 2025, which marks the entry of spot sale

According to statistics from real estate research institute Kerui, since the end of 2022, more than 30 provinces (cities) across the country have launched pilot projects for existing home sales or introduced supporting policies.

Kerui believes that compared with ten years ago, the market foundation for promoting existing home sales at the current stage has become more mature, and it is also a practice that conforms to the actual changes in the industry. Because data from the

Zhang Dawei, the lead analyst at Zhongyuan Real Estate, told reporters that the proportion of ready-house sales nationwide has risen from 12.7% in 2020 to 30.84% in 2024, and recently reached 36%. The maturity of the ready-house sales market has prov

Real scene live-viewable property is highly popular in the market

Without doubt, the gradual implementation of 'sale of ready houses' in commercial real estate enables home buyers to 'see and get what they see', which can solve a series of current problems in the real estate market such as incomplete projects, disc

Taking Hainan as an example, according to Kerui data, the existing home sales policy implemented in Hainan has effectively improved home buyer satisfaction, and the number of complaints about new homes has dropped by 67%; at the same time, the market

An insider from Shanghai's real estate industry told reporters that in recent years, Shanghai has also been piloting the sale of ready-built houses. Previously, a policy was implemented in some areas to sell one or two buildings as ready-built houses

In April this year, Jingmen Urban Renewal Company in Jingmen, Hubei Province, launched a pilot project for the sale of ready-to-live-in housing locally - Chengkong E-Residential Garden. With the sale mode of “apply for property certificate after rece

Zhang Dawei stated that the current sales reform of ready-made houses is not a simple negation of the pre-sale system, but rather the construction of a binary system that prioritizes ready-made houses with pre-sales as supplementary, in order to fund

In the past, power in the real estate market was imbalanced. Under the traditional pre-sale model, home buyers bore triple risks, including the occupation of funds, market fluctuations, and project quality issues.

"The requirement for spot property sales forces real estate companies to win market recognition with their actual product quality, shifting risks from home buyers to developers. This is a safeguard for home buyers' rights and will reshape the consump

Need Innovative Financial Tools

How do real estate developers, who will bear more market risks in the future, view the sale of ready houses?

"In the short term, the funds of real estate companies will bear further pressure, and real estate companies with high financing costs will be completely out of the game. However, in the long run, selling in the form of ready-made houses can stimulat

Simply selling ready-built houses will not truly solve the problem of sales. There are already many commercial houses sold on the market in the form of ready-built houses, but their sales performance varies greatly because some are pilot projects, be

Zhang Dawei believes that if the sale of real estate is implemented in the form of ready houses, the financial pressure faced by real estate enterprises will increase significantly. Therefore, it is necessary to increase financial support and allevia

Reporters found that most of the pilot spot sale policies issued by some provinces and cities in the past included tax incentives, deferred fees for supporting facilities, and encouraged financial institutions to provide preferential loan policies.

According to Crice Real Estate Research, the nationwide implementation of the ready-for-sale property system will undoubtedly face a series of challenges. To address this, innovative financial tools such as 'ready-for-sale property development loans'

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