A residential property project under construction in Huaian, Jiangsu province. ZHAO QIRUI/FOR CHINA DAILY


A package of measures covering commercial housing sales and property financing will help accelerate reforms to China's real estate development, financing and sales systems, and speed up the formation of a new development model for the sector, industry experts said on Monday.


The measures cover the property sector's entire chain, from development and construction to sales and operations, aiming to better protect homebuyers' rights while reducing risks related to home delivery and the safety of funds, experts said.


"The measures, introduced to improve the market system, implement policy support and effectively protect homebuyers' rights, will enhance market transparency and provide substantial support for homebuyers," said Yan Yuejin, deputy head of the Shanghai-based E-House China R&D Institute.


"The policy closely aligns with the spirit and requirements of the nation's 15th Five-Year Plan (2026-30). It should be regarded as a specific implementation of the broader plan and also signals that a new development model for the real estate sector is taking shape at a faster pace," Yan added.


The regulations on housing sales were jointly issued on Friday by the Ministry of Housing and Urban-Rural Development, the Ministry of Natural Resources and the National Financial Regulatory Administration in response to current market conditions.


"The essence of the policy is to reform and improve the commercial housing sales system, with the orderly and effective promotion of completed-home sales at its core," said Li Yujia, a researcher on residential policy in Guangdong province.


"After four consecutive years of market adjustment, property sales have returned to levels of 2009, while sales of newly built homes have continued to decline since the beginning of the year. New-home sales volume fell 11.6 percent in the first seven months, and the outlook for the coming months remains dim," Li said.


Li attributed the weak sales of new homes to increasingly homogeneous products and low-level competition.


In a separate notice issued on Friday, the People's Bank of China and the National Financial Regulatory Administration introduced measures to support property financing and the sector's new development model. The notice extends the maximum term of individual home loans from 30 to 40 years, giving borrowers and lenders greater flexibility in mortgage arrangements.


The capital market responded positively to the new measures, with A-share real estate stocks staging a broad rally in morning trading, the Shanghai Securities News reported. Shenzhen Properties & Resources Development Group Ltd reached the daily limit, surging 10.05 percent to 10.07 yuan ($1.50) per share.


"The market reaction to the new policy has been positive. Beyond its significance for the broader economy, the measures will have a profound impact by supporting property developers in financing and their transition to a new sales model, while providing stronger protection for homebuyers' rights," Yan said.


wang_ying@chinadaily.com.cn