Interview with National Committee Member and Former Vice Minister of Housing and Urban-Rural Development Jiang Wanrong: Recommends Expediting the Introduction of the "Housing Sales Management Regulations," Gradually Promoting Pre-completion Sales, and Raising the Threshold for Commercial Housing Pre-sales

Housing issues concern every family.

On March 5th, the highly anticipated “Government Work Report” emphasized stabilizing the real estate market. Policies include controlling new supply through city-specific measures, reducing inventory, optimizing supply, exploring multiple channels to activate existing commercial housing, and encouraging the purchase of existing properties mainly for affordable housing. The reform of the housing provident fund system will be deepened. The supply of affordable housing will be optimized, and the renovation of dilapidated houses will be accelerated.

At the same time, efforts will be made to promote the orderly construction of safe, comfortable, green, and smart “good houses,” including implementing quality improvement projects for housing and enhancing property management services. The “guaranteed delivery” whitelist system will be further utilized to prevent debt default risks. The foundational systems and supporting policies for new real estate development models will be further advanced.

How should we understand the new development model for real estate? What are its prominent features? What suggestions are there for building the foundational systems and supporting policies for this new model? To explore these questions, during the National Two Sessions, “Daily Economic News” (NBD) interviewed Jiang Wanrong, a member of the 14th National Committee of the Chinese People’s Political Consultative Conference and former member of the Party Leadership Group and Vice Minister of the Ministry of Housing and Urban-Rural Development.

Since joining the former Ministry of Construction in 1988, Jiang Wanrong has dedicated nearly 40 years to the housing and urban-rural development system. He has served as Director of the Real Estate Department, Deputy Director of the Residential and Real Estate Department, and after the establishment of the Ministry of Housing and Urban-Rural Development in 2008, he led the core business department—the Real Estate Market Regulation Department—giving him deep insight into the intricacies and issues of the real estate market. In 2019, he was appointed Vice Minister, overseeing key areas such as housing security and real estate market regulation, until his departure in 2025.

In the interview, Jiang shared his views on the proposals he put forward. He pointed out that, given the market share of second-hand housing approaching 50%, there is an urgent need to improve legal regulations for existing property transactions at the national level. He recommends that the State Council’s legislative authorities include the “Housing Sales Management Regulations” in the legislative plan and expedite their enactment. Strengthening the legal foundation through improved systems for commodity housing sales, information disclosure, online signing, and record-keeping will support the “new development model” for real estate.

Recommendation to include the “Housing Sales Management Regulations” in the legislative plan for prompt enactment

NBD: The report this year emphasizes the development of foundational systems and supporting policies for the new real estate development model. Could you share your understanding of this new model, especially regarding sales systems?

Jiang Wanrong: The 20th Party Congress proposed accelerating the establishment of a housing system with multiple providers, multiple channels of保障, and a combination of rental and purchase options. The Fourth Plenary Session of the 20th Central Committee approved the “Suggestions for the 15th Five-Year Plan for National Economic and Social Development,” which calls for speeding up the construction of a new real estate development model and improving foundational systems for commodity housing development, financing, and sales.

Currently, China’s housing supply and demand are undergoing new changes. By 2025, second-hand housing transactions will account for nearly 45%. In cities like Beijing and Shanghai, second-hand transactions surpass new home sales, shifting from a traditional new-home-centric growth pattern to a balanced approach with both new and second-hand housing. However, I believe the legal regulations for existing housing transactions at the national level are still insufficient.

In the new construction sector, issues such as inadequate fund supervision, information asymmetry, irregular transactions, and delivery risks persist. Some developers illegally divert transaction funds, leading to delays in completing and delivering housing, which attracts social concern. Others engage in false advertising, fabricating or spreading false information about housing prices, maliciously manipulating or colluding to inflate or deflate prices, or deliberately hiding major defects, harming consumers’ right to know and causing social conflicts.

Currently, laws and regulations in real estate mainly include the Urban Real Estate Management Law, the “Regulations on Urban Real Estate Development and Operation,” the “Housing Leasing Regulations,” and the “Property Management Regulations.” However, specific regulations on large-scale housing sales are limited to departmental rules with low authority and insufficient penalties.

In response to reform requirements, the Ministry of Housing and Urban-Rural Development drafted the “Housing Leasing and Sales Management Regulations (Draft for Comments)” in 2017 and solicited public opinions. Based on feedback, the draft was split into the “Housing Leasing Regulations” and the “Housing Sales Management Regulations.” The “Housing Leasing Regulations” have already been enacted. It is recommended that the State Council’s legislative authorities include the “Housing Sales Management Regulations” in the legislative plan for early enactment.

Proposal to gradually promote the sale of existing homes and strictly regulate pre-sale behaviors

NBD: If the “Housing Sales Management Regulations” are enacted soon, what specific system designs should be prioritized to regulate the housing sales market and protect the rights of all parties involved?

Jiang Wanrong: I believe the design should focus on the following aspects:

First, expand the scope of legislation to meet the legal needs of the stock-upgrading phase. Adapt to new market changes by including existing housing transactions within the regulations’ scope, and improve the systems for both existing and new housing transactions, establishing a comprehensive legal framework that balances stock and incremental housing sales.

Second, improve the commodity housing sales system to regulate market order. Gradually promote the sale of existing homes, establish and improve record-keeping for existing home sales, raise thresholds for pre-sale permits, strengthen supervision of pre-sale funds, and ensure that funds within the supervisory limit are used solely for project development and are disbursed according to construction progress.

Third, establish a real-name transaction system to ensure transaction authenticity. Sellers, buyers, real estate agents, and their practitioners involved in housing sales should use real names and identification numbers when posting sale or purchase information, signing contracts, and recording online transactions.

Photo: Citizens engaging in housing transactions. Source: NBD reporter Bao Jingjing

Fourth, establish an information disclosure system to promote transparency. Developers must disclose pre-sale permits, record-keeping information, project location, price, size, mortgage status, etc. Sellers of existing homes should disclose property condition, ownership status, mortgage status, other rights restrictions, and key information affecting housing prices. Housing transaction authorities should publish housing sale information, verification data for existing homes, and industry supervision information.

Fifth, establish an online signing and record-keeping system to strengthen government oversight. Build a unified housing source information database, improve functions such as basic housing information management, online signing, transaction fund supervision, subject verification, information disclosure, and statistical monitoring. Housing sales by developers, real estate agencies, or self-conducted transactions should be recorded through the management platform. It is recommended to use model contracts for online signing, formulated jointly by housing transaction authorities and market supervision departments.

Sixth, establish a housing delivery system to improve quality. Developers should deliver compliant, ready-for-occupancy housing on time as per contract. When model homes are used, they should clearly state whether the actual delivered housing matches the model in quality, equipment, and decoration; if not specified, the delivered housing should match the model.

Seventh, establish a credit management system to strengthen industry integrity. Create a joint incentive and punishment mechanism for trustworthiness and dishonesty in the real estate sector, linking the credit records of industry entities and personnel with sales, financing, credit reporting, and other systems, and publicly disclose credit information in a timely manner.

Promoting a full-chain approach to building “good houses” in five aspects

NBD: The construction of “good houses” has been included in the government work report for the second consecutive year. What work has the Ministry of Housing and Urban-Rural Development mainly carried out over the past year in this regard?

Jiang Wanrong: To meet the new expectations of the public for “good houses,” the Ministry has adhered to multi-party coordination among government, enterprises, and society, focusing on standards, design, materials, construction, and operation & maintenance, promoting a comprehensive chain of “good house” development.

Image: Photo by Chen Li, sourced from NBD media library

Specifically, first, focus on setting high standards. In March last year, the Ministry issued the mandatory national standard “Residential Project Specifications,” which improved housing quality in 14 aspects, including ceiling height, wall and floor sound insulation, door and bathroom clearance, heating and air conditioning in different climate zones. In December, it released the “Opinions on Improving Housing Quality,” clarifying development goals and key tasks for “good houses,” strengthening coordination, and increasing efforts.

Second, focus on good design. Last year, the national “Good House” Design Competition was held again, selecting over 80 award-winning designs from nearly 2,000 entries, including new house designs and renovations. The aim is to guide designers and university students to create diverse, innovative, and well-designed “good houses” tailored to various needs, ensuring every square meter is used efficiently and offers good value.

Third, focus on good materials. Accelerate the research and development of new building materials through initiatives like “list-based” projects, promoting over 50 types of innovative materials to enhance insulation, waterproofing, environmental friendliness, etc. Cultivate new growth points in green buildings and explore applications of internet, sensors, and other new technologies and products.

Fourth, focus on good construction. Fully leverage enterprise roles, encouraging key companies to develop “6633” (six no’s, six preventions, three savings, three essentials) and “365” (three uses, six advantages, five supports) construction systems for “good houses.” Promote smart, green, and prefabricated construction methods to continuously improve quality and ensure project standards.

Additionally, focus on good operation & maintenance. Accelerate the establishment of safety inspection systems, safety management funds, and insurance for building safety, strengthening lifecycle safety guarantees. Implement property management service quality improvement initiatives, explore “property + lifestyle” service models, and promote “property services into households” to address key concerns of residents, creating warmer, happier homes.

Integrating AI, IoT, and other new technologies into homes and buildings

NBD: The report emphasizes orderly promotion of safe, comfortable, green, and smart “good houses.” What areas should the Ministry of Housing and Urban-Rural Development focus on?

Jiang Wanrong: Currently, the “good house” initiative has gained momentum and become a societal consensus. Moving forward, I believe the Ministry should continue to strengthen efforts, promoting the orderly development of “good houses” to provide high-quality living spaces for the people.

Specifically, first, implement housing quality improvement projects. Encourage local governments to effectively implement the “Opinions on Improving Housing Quality,” focusing on standards, design, materials, construction, and operation & maintenance, establishing supporting systems and mechanisms. Develop and release the “Guidelines for Building ‘Good Houses’,” promote the achievements of design competitions, and guide practical implementation. This includes building new “good houses” and gradually renovating old ones into “good houses” using scientific methods to meet diverse housing needs with high-quality supply.

Second, strengthen technological R&D for “good houses.” Based on diverse resident needs, deploy key projects to overcome technical bottlenecks in improving housing quality, creating future-oriented “good house” projects. Establish a comprehensive technological成果库 for the housing sector, compile and release practical and innovative technologies for “good house” construction, and push more useful innovations into engineering practice to benefit the public.

Third, promote upgrading of the housing industry chain. Use the “good house” initiative to open new avenues for industrial transformation. Select regions with a solid foundation to develop clusters covering building materials, decoration, furniture, appliances, etc., and encourage real estate and construction companies to transform into “good house” integrators, innovating product systems and service models. Leverage the broad application scenarios of housing科技, promoting AI, IoT, and other new technologies and products into homes and buildings, achieving commercialization, and making housing a key platform for technological integration.