The reasons for the cancellation of the pre sale system are counted on a case by case basis

Mondo Social Updated on 2024-03-02

Recently, the cancellation of the real estate pre-sale system has been in the dust, causing heated discussions. Whether it is the industry or netizens, whether experts or social people, there are different opinions on the cancellation of the pre-sale system. As a veteran real estate person, I believe that the cancellation of the pre-sale system has sufficient reasons and is imperative.

Reason 1: Boost the three-high model of real estate.

In the past, the high turnover, high leverage, and high housing prices of the property market period were built on the basis of pre-sale, why do we say so, the fundamental reason is that the developer's capital occupation is greatly reduced, and the third-party business is also willing to advance funds, because of the existence of the pre-sale system, the development cycle has been shortened, and once it enters the sales stage, the advance of the third-party business has been successfully solved.

The existence of the pre-sale system allows developers to draw out their own funds for land purchase, and under the cover of high housing prices, land purchase has become one of the important profits of developers, and it is also the fundamental requirement for scale first. When the developer does everything possible to siphon off the project development funds to hoard land, once the project sales are closed, all the problems are exposed.

It is the existence of the pre-sale system, the developer's capital leverage is getting higher and higher, and financing development has become the mainstream, so who bears the high cost of breeding under the three-high model, because the house price is the end point of all costs, so these high-cost expenses are borne by the house price, and finally make the pre-sale system become the driving force of the house price.

Reason 2: Boost housing prices.

In addition to the developer's financing development and three-high model development, which leads to the continuous development of housing prices, the existence of a single pre-sale system is also easy to push up housing prices, because of pre-sale, developers can achieve hunger marketing to the extreme, which is how the "covering the market and reluctant to sell" has appeared many times before.

Buyers will always buy houses in a scarce environment, and housing prices will naturally be high.

Reason 3: Boost rent.

The existence of the pre-sale system not only pushes up the house price but also pushes up the rent, because of the pre-sale, the development cycle is shortened, the ** is enriched, and speculative speculation is generated, many people have multiple suites, in order to make these rents can make up for the monthly payment, which will naturally make the rent rise.

Reason 4: Overdraft** and spending.

Pre-sale will generally allow the purchase funds to pay for the house to get the house between two or three years of time, this is a typical overdraft, buyers think that it is cheaper to buy early, this is a consumption overdraft; The developer pushes the sale at the off-plan stage, which is an overdraft of the project; In order to respond to the market and actively prepare land**, this is a land overdraft; In order to make some plots from immature to mature, it is often necessary to level them first and carry out urban supporting construction first, which is an urban overdraft.

Reason 5: Hidden risks.

The existence of the pre-sale system, so that the real estate project starting capital requirements are reduced, but also to shorten the development cycle of real estate projects, developers in order to improve efficiency often introduce third-party business "advance", consumer prepaid funds and third-party business advance funds to support the developer to maintain the three-high model, once the sales are not smooth, the project is facing an unsustainable situation, the third-party business advance can not be recovered, the people face the risk of not being able to deliver.

The pre-sale system has been canceled, and the existing house is sold, and there is no problem of unfinished real estate, nor is there the dilemma of "no granular income" of third-party merchants.

Only an existing house can materialize all the inputs in the development project, and all problems will be solved.

Should the pre-sale system be abolished?

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