It may be inevitable to cancel the pre-sale system of commercial housing in the long run. The pre-sale system of commercial housing has basically completed its historical mission. The original intention of the pre-sale system is to let developers have funds to develop quickly, thus increasing supply and improving the situation that the housing market was in short supply at that time. However, the per capita housing area in China has exceeded 45 square meters, and the houses currently built are enough for 3 billion people. Therefore, the pre-sale system is no longer needed, and it can be cancelled in some cities, such as the suburbs of first-and second-tier cities, third-and fourth-tier cities, towns and so on. The housing supply in these areas far exceeds the demand.

Advantages and disadvantages of pre-sale system of commercial housing

Advantages of pre-sale of commercial housing:

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 by withdrawing funds, thus escorting the next development.

2. Alleviate the shortage of 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. Compared with existing home sales, it has certain advantages, stimulating consumers' desire to buy, transforming potential demand into effective demand, bringing increment to the housing market and effectively alleviating the tight 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 collect money, which not only greatly reduces the cost, but also passes the risk on to consumers.

2. Lack of third-party supervision. Developers take the mortgage loan of buyers as the main financing channel, and use the loopholes in the system to completely transfer the risks to consumers and banks.

3. It is easy to cause a real estate price bubble. Futures trading is similar to futures trading. Among the people who buy futures trading, many of them aim at hedging and speculation. Real estate developers often drive up property prices through false shortages, exaggerated hoarding and other means, 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. /news img/image/2022/0720/ 10522487 17609 . jpg