Implementation Effects and Improvement Ideas of Commercial Housing Presales on the Chinese Mainland

In recent years, the retention or abolition of commercial housing presales on the Chinese mainland has caused attention from a wide sector of society. The study found that this system derived from the objective reality of a desperate shortage of urban housing in the early years of the reform and opening. The present situation of the short supply of housing indicates that the presale system still has the necessity of existence. It not only helps developers promote the investment-production competence, but also helps buyers avoid the risk of rising prices. Meanwhile, it helps investors achieve efficient allocation of resources and reduces decision-making errors. In the commercial housing presale system, some risks of trade and finance do exist in the mainland; but, this is not, in itself, an inevitable product. To continue to improve the regulatory system of presale - especially the regulatory system of prefunding - is the future direction of the presale system reform.