On September 4th, the Guangzhou Tianhe original TV station plot was won by Yuexiu Property for approximately 2.48 billion yuan, with a premium rate of about 15.9%. The previous day, a residential plot in Beijing's Shunyi Wenyu River area was acquired by China Resources Land for around 8.3 billion yuan, reflecting a 17.37% premium. On September 1st, a site in Hangzhou's Linping Donghu New Town was secured by Chongqing Zhongjiao Real Estate Co., Ltd. at the base price of 286 million yuan. These transactions mark the performance of the land markets in Guangzhou, Beijing, and Hangzhou following the new real estate policy implemented on August 28th.
On that date, the Ministry of Housing and Urban-Rural Development, the Ministry of Natural Resources, and the National Financial Regulatory Administration jointly issued the "Notice on Improving the Commercial Housing Sales System." This signals a decisive move towards promoting "see-what-you-get" sales of completed homes, transitioning gradually from the presale system. Following the announcement, speculations emerged that "developers will be less aggressive in land acquisition" and "small and medium-sized enterprises will be forced out." Are these claims valid? The land market has already provided an answer.
Developers continue to acquire land routinely, with quality plots transacting steadily, confirming that the industry has grasped the underlying logic of the completed-homes sales model—namely, the rising demand from homebuyers for tangible, quality-assured properties. Implementing this sales model is an institutional refinement aligned with genuine market needs. After nearly three decades of rapid growth, supply and demand dynamics in China's real estate market have undergone major changes, ushering in a new era focused on quality enhancement of existing stock.
Market data illustrates this shift: the proportion of newly built commercial homes sold as completed units has risen from 13.9% in 2022 to 32.4% in 2025. Additionally, in the first half of 2026, sales of existing homes in the secondary market accounted for over 50% of total transactions on a semi-annual basis for the first time. These two indicators collectively point to one fact: consumption of ready homes is increasingly becoming the market's main trend.
During the presale era, buyers had to rely on models, floor plans, and showrooms to judge property quality, making purchases akin to "opening a mystery box." Problems such as reduced quality, downgraded landscaping, and unfulfilled planning promises frequently surfaced upon delivery. In contrast, completed-homes sales occur after project completion and acceptance, meaning the product is fully visible and tangible. At a deeper level, these changing demands reflect a transformation in purchasing logic. In the past, when prices rose steadily, early buyers gained profits, and they were willing to absorb development risks. Now that prices have flattened and homes have reverted to their residential nature, buyers prioritize product certainty. Authentic market demand is compelling the industry to eliminate the malpractices of "taking money without delivering the house."
Given this momentum, developers must proactively step out of their comfort zones and promptly reshape their business models to suit the completed-homes sales era. They also need to carefully reassess their land acquisition economics. Under the traditional presale system, a project could be put up for sale once development investment reached 25% of total construction costs, allowing a return on investment within 6 to 12 months from land acquisition. Those presale proceeds could then be recycled into the next project, meaning less own-capital was tied up and turnover was faster. With completed-homes sales, however, properties can only enter the market after final acceptance, requiring capital to remain locked within the project for a longer period and incurring higher financial costs. The same own-funds would see a return period extended to perhaps 2.5 years or even 3 years.
While this model raises the investment bar, it does not mean developers have no viable path forward. Completed-homes sales are not untested—Hainan province has already implemented them province-wide, with many projects completing the cycle from land acquisition to sale in just 11 months. This shows that with precise product positioning and efficient construction management, developers can still find room to operate. Which types of enterprises can successfully manage the land acquisition math under this system? One category includes the "high achievers"—those that have proactively transformed, possess strong credit ratings, diverse financing channels, low capital costs, product offerings that match market demand, and comprehensive capabilities. The other includes regional developers that avoided high leverage and reckless expansion, understand local markets well, and excel at product development.
Following the new policy, smaller firms will not universally exit the market; what will be eliminated are those that relied heavily on debt, leverage, and rapid turnover without pursuing transformation. It is foreseeable that the property sector will face short-term growing pains, yet it holds long-term prospects. The supporting policies must keep pace with this transition. It is important to clarify that the new policy does not adopt a blanket approach—some projects may still continue using the presale method. The current phase aims to build a dual-track system, with completed-homes sales as the primary mode and presales as a supplement, progressing through a phased "new and old demarcation" approach.
Thus, the completed-homes sales model should not advance in isolation but rather as part of a comprehensive package of policies being rolled out incrementally. For instance, on the land supply side, policies could support installment payments for land premiums to alleviate corporate funding pressure. On the financial front, a "lead bank" system could be introduced, linking one project to one bank to ensure development loan availability and safeguard capital security. On the taxation side, taxes and fees prepaid during the presale stage could be deferred to the completed-homes sales stage to ease early-stage cash flow burdens. In terms of the business environment, approval and construction review timelines could be further compressed to achieve "build immediately upon land acquisition, certificate upon sale."
Ultimately, the essence of completed-homes sales is not to negate the historical contributions of the presale system, but rather to align the housing sales framework with evolving market supply-demand conditions. As the property market now enters a new phase driven by demand and quality priorities, developers must abandon outdated mindsets, quickly break free from path dependency, and strive to seize the initiative in this new market cycle.
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