Homebuyers face risks such as uncertainty about the delivery time and difficulty in guaranteeing the quality of the home
[Viewpoint of the Two Sessions] Where will the pre-sale system of commercial housing go after 28 years?
The representative committee suggested that the pre-sale of commercial housing should be gradually cancelled and the sale of existing housing should be implemented.
Our reporter Beimengyuan Yang Zhaokui
This year's government work report proposes to support the commercial housing market to better meet the reasonable housing needs of home buyers.
Faced with the housing needs of the people in the new era, where will the 28-year-old commercial housing pre-sale system go, it has once again become a hot issue of concern to the representatives of the two sessions.
In response to the risks exposed by the pre-sale of commercial housing in recent years, the representative committee suggested that the pre-sale of commercial housing should be gradually cancelled and the sale of existing housing should be implemented.
If you want to buy a house, you have to pay the full amount first - the pre-sale system is unfair
Since 2005, the voices of canceling the pre-sale of commercial housing have been heard from time to time at the National Two Sessions.
In the view of some deputies, the gradual cancellation of the pre-sale of commercial housing and the implementation of the existing housing sales system is the need to effectively protect the rights and interests of home buyers.
"To realize the people's desire for a better life, the first thing to face is the problem of housing consumption. The current pre-sale system in the form of off-plan transactions is unfair to the buyers, and has become the source of intensified contradictions in the real estate market, hurting people's livelihood to a certain extent." Zhang Jianming, a member of the National Committee of the Chinese People's Political Consultative Conference and chairman of Mingyu Group, said that under the pre-sale system, home buyers face risks such as uncertainty about the delivery time and difficulty in guaranteeing the quality of the home, and there are constant disputes with developers.
Regarding the unfairness hidden behind the pre-sale system, Liu Shangxi, member of the National Committee of the Chinese People's Political Consultative Conference and president of the Chinese Academy of Fiscal Sciences, gave a vivid description to the reporter: "For ordinary people, before they see the house, they have to pay first. For developers, they can do it without money. As long as they have a piece of land, they can get a loan from the bank, and then they can draw drawings. With the drawings, they can pre-sell and receive money.”
Such a model is obviously not conducive to protecting the rights and interests of home buyers.
Lu Tianxi, deputy to the National People's Congress and director of the Jiangxi Provincial Department of Housing and Urban-Rural Development, said that under the current pre-sale system, the purchase price prepaid by homebuyers, including down payment and bank mortgage loans, is transferred to the real estate development company in full at one time. The pre-sale funds supervision account.
From the purchase of the house to the delivery of the house, it takes at least 1 year, and as many as 2 to 3 years, which obviously increases the obligations and burdens of the buyers and increases the risks of the buyers.
"Once there are problems such as unfinished projects, it will cause huge losses to the buyers, and will also cause social disputes and instability." Representative Lu Tianxi said.
The house is not built, and the pre-sale makes money - the risk exposure of the pre-sale system
Mo Tianquan, member of the National Committee of the Chinese People's Political Consultative Conference, said: "The pre-sale system of commercial housing is a product of a specific historical period. It played an active role in the early stage of real estate development and effectively solved the problem of real estate development funds. But now, developers use the pre-sale of commercial housing to make money, not only The cost is greatly reduced and the risk is passed on to the consumer.”
Pre-sale is essentially commercial credit. Liu Shangxi said that real estate development companies hold bank credit in one hand and commercial credit in the other, which is equivalent to adding double leverage.
"Although it is conducive to the rapid expansion of real estate companies, it also increases its vulnerability. The capital chain is too tight, which is prone to risks and difficult to control."
In recent years, changes in supply and demand in the real estate market have further magnified the potential risks behind the pre-sale system.
"Starting from 2020, the overall supply of housing has exceeded demand. Real estate sales are under pressure, and the market has experienced the phenomenon of real estate shutdown due to various reasons such as broken capital chains, planning adjustments, increased construction costs, and defaults by builders." National Committee of the Chinese People's Political Consultative Conference Member, Nantong Shi Weidong, president of the university, said that the risk of pre-sale system has gradually been exposed, which has seriously affected the interests of home buyers and the financial security of banks.
"Under the pre-sale system, many development entities have no financial strength and rely entirely on borrowing and pre-sale to obtain development funds, which in disguise encourages low-level vicious competition, breeds speculation, and fuels real estate bubbles." In the opinion of Commissioner Zhang Jianming, the pre-sale system It is the main source of high real estate leverage, and high real estate leverage is an important source of derivative financial risks.
The implementation of the existing house sales system will help to fundamentally reduce the financial leverage of developers, effectively prevent financial risks, and promote the rational return of the real estate industry.
One-handed payment, one-handed delivery - the general trend of existing home sales
Liu Shangxi said that at present, it is difficult to solve the risks and problems caused by the pre-sale system only by strengthening supervision.
Zhou Shihong, member of the National Committee of the Chinese People's Political Consultative Conference and vice chairman of the Anhui Provincial Party Committee of the Revolutionary Committee of the People's Republic of China, also holds the same view: "After more than 20 years of rapid development of my country's real estate market, enterprises have accumulated enough, and the financing channels have become more and more diversified. If it exists again, reform is imperative.”
Representative Lu Tianxi called for the revision of the "Administrative Measures for the Pre-sale of Urban Commercial Housing" as soon as possible, to further refine and clarify the unified conditions for the pre-sale of commercial housing across the country, and to gradually increase the threshold for pre-sale licensing until it transitions to the sale of existing houses.
Member Zhang Jianming suggested canceling the pre-sale system, fully implementing the existing home sales system, and at the same time leaving a sufficient time window for relevant market entities to evaluate, adjust, and transform to ensure the orderly and steady implementation of the new policy.
Many representatives said that in the long run, the commercial housing market will eventually move towards the sale of existing houses.
Committee member Shi Weidong said that in 2020, Hainan has announced the implementation of existing home sales for newly built houses. It is recommended to summarize and promote relevant experience in a timely manner, and to cancel the off-plan housing system in a step-by-step manner according to the region.
"After changing to existing home sales, what you see is what you buy, and the people's needs for living and working in peace and contentment will be better satisfied."