How to prevent the problem of unfinished property market and limit the rapid expansion of developers through current sales?
In recent years, China's property market has been in the spotlight. Under the influence of various property market control policies, the development situation of the property market continues to change. In order to avoid the problem of unfinished property market and limit the rapid pace of expansion of developers, the sale of cash has become a topic of great concern.
Spot sale refers to a sales method in which the house is sold to the outside world immediately after the developer's construction is completed. In this way, the developer needs to have enough funds to complete the construction of the house, otherwise it will not be able to sell it externally and start a new project. In contrast, pre-sales begin before the developer completes the construction of the house.
In the problem of unfinished property market, the current sale has a great advantage. First of all, with the current sale, the developer needs to complete the construction of the house before it can really be sold to the outside world. This means that the developer must ensure the quality of the property and the progress of the project to avoid a situation where the project is not finished.
This will help improve the quality of the home and reduce the risk for home buyers.
Second, the sale of the spot can limit the rapid pace of expansion of developers. Under the pre-sale system, developers can sell a portion of their homes in advance and use the sales proceeds to support subsequent project development. Under this model, developers can quickly raise funds and continue to invest in new project development, thus achieving rapid expansion. However, this also poses some problems. Some developers may rely too heavily on pre-sale funds, resulting in projects that are not completed or cannot be delivered on time. On the other hand, the sale requires the developer to have sufficient funds to complete the construction of the house before it can be sold to the outside world. This will effectively limit the speed of expansion of developers and reduce the over-reliance of developers on pre-sale funds.
At present, Hefei and Zhengzhou and other places have piloted the sale of existing houses, and have achieved certain results. It is expected that by 2024, more cities will promote existing home sales and accelerate the reform of the pre-sale system.
This will further strengthen the supervision of the property market and improve the protection of the rights and interests of home buyers.
In addition, different levels of cities may introduce different regulatory policies. Tier-1 cities may retain some restrictions to control housing prices and market demand. Second-tier cities may gradually remove purchase and sale restrictions and relax the threshold for home purchases to attract more buyers. Third- and fourth-tier cities and below are likely to make efforts in terms of subsidies to attract the inflow of talent and capital. This differentiated policy is a reflection of the attractiveness and demand of different cities.
In short, the current development of the property market needs to be stable, and the policy needs to be adjusted accordingly. It is a feasible solution to prevent the problem of unfinished property market and limit the rapid expansion of developers by selling now. At the same time, cities at all levels should adopt differentiated regulatory policies according to their own conditions to promote the healthy development of the property market. Only through such efforts can the long-term stability and sustainable development of the property market be achieved.