Beijing mandates structural completion for presale permits, caps deposits at 1%
Beijing became the first Chinese city to issue detailed rules for the national commercial housing sales reform. Effective August 28, 2026, new projects must achieve structural topping-out before presale permits, with full fund supervision. Existing projects get a transition period until end-2027. Land premiums can be paid in two-year installments interest-free. Presale deposits are capped at 1%. Analysts say the policy balances reform with market stability but will triple developer capital cycles.
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Common ground
- Both sides agree that China's pre-sale housing model had serious flaws that needed reform.
- Both acknowledge that the new policy caps deposits at 1% and delays mortgage disbursement until project completion.
- Both recognize that the two-year land payment period gives developers some breathing room.
- Both agree that protecting ordinary homebuyers is a key goal of the policy.
Points of contention
- The Eastern agent sees the policy as proactive, strategic reform, while the Regional agent calls it a desperate damage-control measure.
- The Eastern agent argues China's housing market is driven by genuine urbanization, not speculation like Dubai or Turkey; the Regional agent says all housing bubbles use the same 'unique conditions' excuse.
- The Eastern agent claims developers bear the cost under the new rules; the Regional agent insists costs are passed on to families, workers, and subcontractors.
- The Eastern agent says the policy shows sovereign competence; the Regional agent says it's nationalist rhetoric protecting the powerful while ordinary people suffer.
Blind spots
- Neither side fully addresses the fate of migrant workers and small contractors who may go unpaid during the transition.
- The debate overlooks how local governments, which rely heavily on land sales, will adjust to reduced revenue from the reform.
- Both agents ignore the possibility that developers might find loopholes or delay projects beyond the two-year window.
WorldAttention’s read
This debate reveals a deep split in how to interpret Beijing's housing reform. The Eastern agent frames it as a bold, proactive move that protects ordinary families by phasing out a predatory pre-sale model, using China's strong governance and capital controls to avoid the boom-bust cycles seen in Western and Middle Eastern markets. The Regional agent counters that it's a band-aid on a broken system built on developer debt and homebuyer deposits, arguing that the two-year transition just kicks the can down the road while families, workers, and contractors bear the real cost. Both agree the old model needed fixing, but they disagree sharply on whether this policy is strategic evolution or desperate damage control. The blind spots include the fate of migrant workers and small contractors, how local governments will cope with lost land revenue, and whether developers will find ways to game the new rules. Ultimately, the reform's success will be judged not by its intentions, but by whether ordinary people actually get the homes they've paid for.
Reporting timeline
Beijing Issues First Local Rules for Presale Reform, Caps Deposits at 1%
Beijing has become the first Chinese city to issue detailed implementation rules for the national commodity housing sales system reform announced on August 28, 2024. The new rules, effective from September 24, 2024, introduce a phased transition: from August 28, 2026, new residential projects must achieve structural completion before presale permits are granted, and personal mortgage loans will only be disbursed after project completion. For projects already in the pipeline, a two-year transition period is provided. Land payment terms are eased, allowing a 50% down payment with the remainder due within two years interest-free. The rules also cap presale deposits at 1% of the total price. Analysts from E-House, Zhongzhi, and Guangdong Provincial Urban-Rural Planning Institute note that the policy balances reform with market stability, but will significantly extend developer cash flow cycles from roughly one year to three years, increasing financial pressure. The rules are expected to serve as a template for other cities.
Read sourceBeijing Releases Detailed Rules for Home Sales, Allowing Two-Year Land Payment Period
On September 24, 2024, Beijing became the first city to issue detailed implementation rules following China's August 28 housing policy reform. The rules, jointly released by four municipal authorities, clarify key aspects of the new policy including预售 (pre-sale) management, 现房 (completed home) sales, fund supervision, housing credit, land supply, and market order. For new land auctions after August 28, projects must prioritize completed home sales, and pre-sale permits require the main structure to be topped out. A transition period until the end of 2027 is set for projects already in the pipeline. Notably, land premiums can now be paid in installments over two years without interest, easing developer cash flow. Personal mortgage loans for new projects will only be disbursed after project completion and filing. Analysts from E-House, Guangdong Housing Policy Research Center, and China Index Academy commented that the rules provide a replicable template for other cities, balance new and old projects, and strengthen fund supervision to protect homebuyers while allowing developers reasonable fund use.
Read sourceBeijing issues first local rules for new home sales, capping deposits at 1%
Beijing has become the first Chinese city to issue detailed implementation rules for the national policy on reforming commercial housing sales, moving toward a presale-to-completion model. The rules, effective from August 28, 2026, require new residential projects to achieve structural topping-out before presales can begin, and personal mortgage loans will only be disbursed after project completion. Existing projects have a transition period until 2027. Land premiums can now be paid in installments over two years without interest. Homebuyer deposits are capped at 1% of the total price. Analysts from E-House, Zhongzhi, and Guangdong Urban-Rural Planning Institute note the policy balances reform with market stability, but warn it will triple capital occupation periods for developers, significantly increasing cash flow pressure. The rules are expected to serve as a template for other cities.
Read sourceShow 6 older updatesHide older updates
Beijing issues first local rules for presale reform, capping home deposits at 1%
Beijing has become the first Chinese city to issue detailed implementation rules following the national '8·28' policy on reforming commercial housing sales. The rules, jointly released by four municipal authorities on September 24, introduce a 'new-old demarcation' approach: from August 28, 2026, new land parcels will require buildings to be structurally topped out before presale permits, and personal mortgage loans will only be disbursed after project completion. Existing projects with land but no planning permits get a transition period until end-2027. Land premiums can now be paid in installments over two years with no interest. A key consumer protection measure caps presale deposits at 1% of the total price. Analysts from Guangdong Provincial Urban Planning Institute and China Index Academy say the rules balance policy shock with transition needs, providing a template for other cities. The policy is expected to extend developers' cash flow recovery cycles from about one year to roughly three years, significantly increasing capital pressure.
Read sourceBeijing mandates capped pre-sales, prioritizes existing home sales from September 2026
On September 24, 2026, four Beijing municipal departments jointly issued an implementation opinion to reform the city's commercial housing sales system, effective immediately. The policy, aligned with national directives, introduces six key measures. First, for new projects (land auctions after August 28, 2026), pre-sale permits require the main structure to be topped out and a structural acceptance record. Pre-sale funds will be fully and continuously monitored until project completion. Transitional rules apply to projects at different stages. Second, new projects must prioritize existing home sales; developers can sign deposit contracts (max 1% of price) after obtaining a construction permit, with buyer cancellation rights if delivery is delayed. Third, a lead bank system is established for development loans, requiring all project funds to be managed in accounts at the lead bank. Fourth, personal mortgage loans for pre-sale projects can only be disbursed after project completion and must be paid into the pre-sale supervision account. Fifth, land supply is optimized with support for 'ready-to-build' schemes and extended land premium payment terms (50% down payment within 30 days, balance within two years, interest-free). Sixth, market order will be strictly regulated, including a project company system and quality assurance from design to delivery.
Read sourceBeijing to Require Completed Building Structures for Pre-Sale Permits, Prioritizes Spot Sales
On September 24, the Beijing Municipal Commission of Housing and Urban-Rural Development, along with three other municipal agencies, jointly issued an implementation opinion on improving the commercial housing sales system. Effective September 24, 2026, the new rules mandate that for commercial housing projects whose land use rights auction notices are published after August 28, 2026, developers applying for pre-sale permits must have the main structure of the single building completed (topped out). They must also submit a signed acceptance record for the main structure sub-project from the construction, survey, design, construction, and supervision units. Additionally, pre-sale funds will be subject to full and whole-process supervision, which will only be lifted after the project passes joint acceptance. The policy also stipulates that starting August 28, 2026, new projects should prioritize spot (completed) sales over pre-sales.
Read sourceBeijing mandates capped pre-sales for new housing projects, prioritizes spot sales from August 2026
The Beijing Municipal Commission of Housing and Urban-Rural Development, along with three other departments, issued an implementation opinion on September 24, 2026, to reform the city's commercial housing sales system. Effective August 28, 2026, newly auctioned land parcels for commodity housing must achieve structural topping-out before applying for pre-sale permits, with full and process-wide supervision of pre-sale funds. The policy prioritizes spot (completed) housing sales for new land projects. For projects already in the pipeline, transitional rules apply, including stricter fund supervision and a deadline of end-2027 for old pre-sale conditions. The policy also introduces a lead bank system for development loans, delays personal mortgage disbursement until after project completion and filing, and encourages development loans for spot-sale and 'good housing' projects. Land supply will be optimized around rail transit, with flexible payment terms for land premiums. The measures aim to stabilize the real estate market, protect buyer interests, and promote a new development model.
Read sourceBeijing mandates capped pre-sales, prioritizes existing home sales from September 2026
Beijing's municipal authorities, including the Housing and Urban-Rural Development Commission, have jointly issued an implementation opinion to reform the commercial housing sales system, effective September 24, 2026. The policy, aligned with national directives, introduces six key measures. First, for new projects (land auctions after August 28, 2026), pre-sale permits require the building structure to be topped out and a signed acceptance record. Pre-sale funds will be fully and continuously supervised until project joint acceptance. Transitional rules apply to projects at different stages. Second, new projects must prioritize selling completed (existing) homes. Developers can sign deposit contracts (max 1% of price) after obtaining a construction permit, with buyer cancellation rights if delivery is delayed. Third, a lead bank system is established for development loans, requiring all project funds to be managed in accounts at the lead bank. Fourth, personal housing loans (including provident fund loans) for new pre-sale projects can only be disbursed after project completion, via entrusted payment to the supervision account. Development loan support is increased for existing home and 'good house' projects. Fifth, land supply is optimized with support for planned plot sales and 'start construction upon land acquisition', and land premiums can be paid in installments over two years. Sixth, market order will be strictly regulated, including a project company system and quality assurance systems.
Read sourceBeijing to Strengthen Pre-Sale Management and Advance Property Sales from 2026
On September 24, the Beijing Municipal Commission of Housing and Urban-Rural Development, along with three other municipal departments, jointly issued an implementation opinion on improving the commercial housing sales system. The new rules, effective September 24, 2026, apply to commercial housing projects whose land use rights auction announcements are published after August 28, 2026. Key measures include requiring that for pre-sale applications, the main structure of a single building must be completed and sealed, accompanied by signed acceptance records from the project's construction, survey, design, construction, and supervision units. Additionally, pre-sale funds for new projects will be subject to full and whole-process supervision, with the fund supervision only being lifted after the project passes a joint acceptance inspection. The policy aims to strengthen pre-sale management and promote the orderly advancement of property sales in Beijing.