What happened
On August 28, several Chinese ministries jointly released a raft of property policies. The housing, natural resources, and financial regulatory authorities moved to improve commodity housing sales rules; the central bank and financial regulator revamped real estate credit management; the securities regulator issued a document supporting new development models; and the financial regulator published five management measures covering development loans and personal mortgages.
The most notable change is in sales. Under the new sales rules, newly transferred land projects and existing land projects without construction permits should prioritize spot sales. For presale projects, individual buildings must complete structural capping. Buyer funds including down payments and mortgages must go into supervision accounts, released only after completion and utilities are ready. This moves spot sales from pilot to institutional promotion and raises presale thresholds.
Credit and capital market policies complement the sales reform. Personal mortgage rules raise the debt-to-income ratio cap from 55% to 60% and extend the maximum loan term to 40 years. Loan disbursement is tied to project completion for presale homes. Development loans differ by sales mode, with presale project loans capped at five years and spot sales at seven. The securities regulator supports developer refinancing, M&A, bonds, ABS, and REITs, pushing financing from entity credit to project quality.
Why it matters
This is not a short-term stimulus. It addresses delivery risks and industry transformation. By linking mortgages to completed homes, it protects buyers and reduces financial risk. By shifting financing to project-based and diversifying channels, it aims to break the cycle of rolling over debt and foster sustainable development.
Key facts
Multiple agencies coordinated policies on Aug 28.
Spot sales prioritized for new and unapproved projects.
Presale buildings must be structurally topped out.
Buyer funds in supervision accounts until completion.
Mortgage debt-to-income cap raised to 60%, term to 40 years.
Development loans: presale max 5 years, spot max 7 years.
CSRC supports developer refinancing, M&A, bonds, ABS, REITs.
What to watch next
How quickly spot sales become standard and how developers adapt cash flow.
Whether the shift to project-based financing improves capital allocation and reduces defaults.
Impact on housing supply and buyer confidence as policies roll out.