China unveils new property rules to protect buyers, mitigate risk
China just rolled out new property rules to help calm its shaky real estate scene.
With home prices barely rising in most cities this July, the government is now pushing for more completed homes to be sold and wants better protections for people buying under-construction properties.
The goal? Make things safer for buyers and less risky overall.
Chinese banks will lend after completion
Banks will now give out housing loans only after projects are finished, so developers cannot rely on presale money to build anymore, a big shift since 68% of new-home sales by floor space last year came from presales.
This could squeeze some developers financially but aims to cut down on unfinished buildings.
On the buyer side, mortgage terms have been stretched from 30 to 40 years, making monthly payments a bit lighter, though concerns over property prices, employment, and household confidence persist.