Wuhan joins major Chinese cities in shift towards completed-home sales
A complete supply-side transformation of China’s housing market is likely to take precedence over any immediate revival in homebuyer demand following Wuhan’s overhaul of new-home sales, according to property analysts. Wuhan, capital of the central Chinese province of Hubei, is the fourth major economic hub – after Beijing, Shanghai and Guangzhou – to encourage a broader transition towards…
Wuhan, Hubei province's capital, has joined Beijing, Shanghai, and Guangzhou as one of four major Chinese cities shifting towards completed-home sales. Property analysts predict this structural change will take precedence over any immediate revival in buyer demand. According to Yan Yuejin, deputy director at E-House China Research and Development Institution, the move will drive a shift on the supply side, steering buyers towards completed homes and higher-quality inventory.
Li Guozheng, director of China Index Academy's central China market research centre, emphasized that the policy aims to balance delivery risks, buyer protection, and developers' funding pressures, supporting a smooth market adjustment. The policy, effective after August 28, requires residential projects on newly sold land to open pre-sales only after the building's main structure is completed.
Developers are encouraged to prioritize completed home sales, with pre-sold projects allowed to continue using the old framework until the end of 2027, if delivered on schedule. The policy, issued by national housing, land, and financial regulators, implements stricter conditions for pre-sales and mortgages on pre-sold homes, issuing them only after completion.
To ease cash flow, developers operating under the previous regime can apply for bank guarantees to replace up to 30% of escrow funds reserved for project completion. Yan noted that similar policy roll-outs across major cities reflect a broader shift towards tighter supervision of developers' funds and targeted credit support to lower financing costs.
Written by urgent.news from SCMP Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
