The recent overhaul of China’s housing presales system belatedly addresses some of the vulnerabilities that contributed to the country’s property downturn. But the changes only apply to new projects, meaning the near-term impact on housing supply and construction activity will be modest. More noteworthy for the immediate outlook is an increase in the maximum mortgage tenure. This will help unlock some home-buying demand, though we doubt that it will be enough to drive a turnaround in prices.
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