A joint policy statement was released on August 28th by the Ministry of Housing and Urban-Rural Development, the Ministry of Natural Resources, and the National Financial Regulatory Administration, outlining new measures to regulate the commercial housing sales system.
The directive emphasizes strengthening oversight of pre-sale funds. City and county housing authorities will be responsible for supervising these funds, with dedicated agencies handling the specific regulatory tasks. These agencies must sign supervision agreements with developers and establish special accounts at the project's primary bank. All buyer payments, including down payments and individual housing loans, must be deposited entirely into these regulated accounts. Funds will only be released after the project passes completion inspection and utilities like water, electricity, gas, and heating are ready for delivery.
If a developer defaults and fails to deliver the property on schedule, the buyer has the right to terminate the purchase contract as stipulated in the agreement. In such cases, the developer is obligated to refund the purchase money and bear liability for breaching the contract. Contracts must also clearly define the rights and responsibilities related to the deposit of purchase funds into the regulated accounts.
To further safeguard buyer interests and prevent delivery risks, the new rules require that pre-sale conditions be standardized, with single buildings needing to complete their main structure's topping-out to be eligible for pre-sale. Management of pre-existing projects is also being optimized to ensure reasonable supervision amounts and secure fund usage.
Beyond reinforcing pre-sale controls, the policy strongly encourages a shift towards complete (ready) home sales, promoting a "what you see is what you get" model. This approach is intended to reduce disputes and fundamentally mitigate delivery risks. For land sold after the implementation date, new projects should prioritize complete sales, and projects with land but no construction permits are also encouraged to adopt this method.
To support this transition, a filing system for complete sales will be implemented. Developers must submit their sales plans and proof of delivery readiness for approval. A new deposit mechanism has also been introduced, allowing developers to collect a small, legally-compliant deposit after obtaining a construction permit. These deposits will also be held in regulated accounts and only released once the property is ready for handover.
The notice also calls for enhanced policy coordination across land supply, financing, and development management. This includes optimizing land supply plans, mandating that developers use their own funds for land purchases with the option for installment payments, and increasing financial support. Projects will adopt a primary bank system, with one bank selected to lead or form a syndicate for development loans. Loan disbursement must align with the project's construction timeline.
Furthermore, a project company system will be implemented for development, ensuring clear accountability for quality. The policy also aims to streamline approval processes, promote the construction of high-quality "good homes," and facilitate simultaneous delivery of homes and property ownership certificates. For complete sales, initial property registration should generally be completed beforehand, with efforts to coordinate contract signing, registration, and mortgage processes so buyers can obtain their certificates at the time of delivery.