1. Increase financing channels for developers.
Pre-sale of commercial housing enables development enterprises to solve the capital problem in the early stage of construction projects and escort the next development by withdrawing funds.
2. Relieve the tight housing demand.
The pre-sale price of commercial housing is generally lower than the sales price of existing houses 10%-20%, and the delivery period is 1 -2 years, which has certain advantages over the sales of existing houses, stimulates consumers' desire to buy, turns potential demand into effective demand, brings increment to the housing market, and effectively relieves the shortage of housing demand.
Disadvantages of pre-sale of commercial housing:
1. Provide convenience for developers to illegally raise funds and transfer risks.
Developers use the pre-sale of commercial housing to circle money, which not only greatly reduces the cost, but also transfers the risk to consumers.
2. Lack of third-party supervision
Developers regard the mortgage loan of buyers as the main financing channel, and use the loopholes in the system to completely pass the risk on to consumers and banks.
3. It is easy to cause a real estate price bubble.
Call auction trading is similar to futures trading, and many people buy call auction for hedging and speculation. Real estate developers often drive up property prices by means of false shortage and exaggerated hoarding, which leads to excessive deviation from the real value, thus laying a curse for the decline of housing prices, becoming a stumbling block to the macro-control of national real estate and giving birth to bubbles.
What is the pre-sale of commercial housing?
Pre-sale of commercial housing, also known as house pre-sale, refers to the real estate transaction behavior that the real estate development enterprise and the purchaser agree that the purchaser will pay the deposit or advance payment at a certain date in the future and own the existing house. Its essence is the buying and selling of housing futures, which is just a futures contract of housing. It and existing home sales have become two main forms of housing sales in China commercial housing market.
Pre-sale of commercial housing, commonly known as "selling uncompleted flats" and "selling faster houses", was introduced from Hong Kong, while most foreign countries implemented the existing home sales system of commercial housing. Pre-sale of commercial housing is one of the most important ways of real estate sale and transfer in China. Although the state has recently promulgated some laws, regulations and judicial interpretations to regulate the sale of commercial housing, there are still many problems in the pre-sale of commercial housing.