Chinese Provinces Plan to Ask Developers Not to Sell Homes Until They Are Built

A number of Chinese provinces have said they will start trial plans to require developers to only list finished homes for sale, as an ongoing industrywide liquidity crisis has highlighted the presale model’s problems, such as the widespread stalled construction that triggered mortgage boycotts last year.

Provincial housing departments in Henan, Shandong, Anhui and Sichuan will start, or encourage eligible cities to start, such pilot programs this year, according to their work plans announced between Jan. 31 and Feb. 7.