China moves to improve commercial housing sales system

China will steadily advance reforms to its commercial housing sales system and accelerate efforts to foster a new development model for the real estate sector, according to a recent circular jointly issued by three government departments.

The circular calls on local authorities to regulate presale conditions for commercial housing and strengthen supervision of presale funds to ensure the safety of such funds, effectively guard against housing delivery risks, and protect the legitimate rights and interests of homebuyers.

For commercial housing projects offered for presale, the main structure of each building should be topped out, according to the circular.

For commercial housing projects that had obtained construction project planning permits before the circular took effect and are offered for presale, existing policies and regulations will continue to apply to presale conditions and the supervision of presale funds.

The circular also calls on local authorities to advance the sale of completed new homes in an effective and orderly manner, so as to realize the goal of "what you see is what you get" and reduce disputes over housing delivery.

Meanwhile, local authorities should improve supporting policies concerning land supply and financial support for commercial housing projects, optimize the management of project development and construction, sales and real estate registration, and promote the issuance of real property ownership certificates upon housing delivery, the circular notes.

The circular was released by the Ministry of Housing and Urban-Rural Development, the Ministry of Natural Resources and the National Financial Regulatory Administration. ■