Overview
- A joint notice from MOHURD, the Ministry of Natural Resources and the NFRA ordered local governments to prioritise completed‑home sales, with the documents released on Friday.
- New central‑bank and NFRA rules require mortgages to be issued only after a housing project is completed, changing when buyers access long‑term loans.
- Regulators also set lead‑bank rules for development loans and the securities regulator pledged support for listed developers through refinancing, mergers and restructurings.
- The change forces developers to fund construction before sales which will favor larger, well‑capitalised builders and put near‑term strain on smaller firms and their creditors.
- The shift responds to the 2021 liquidity shock and stalled projects and could cut delivery risk while creating fiscal pressure for municipalities that rely on quick land‑sale turnover.