International

China Boosts Credit Support as Property Market Reform Accelerates

  • by- Zaid
  • Aug 29, 2026
China extends mortgage tenure to 40 years and introduces property market reforms to support homebuyers, developers and completed-home sales.
China Boosts Credit Support as Property Market Reform Accelerates

Beijing, August 29, 2026: China has announced a series of measures to strengthen financing support for homebuyers and property developers as the government steps up efforts to stabilise its five-year-old real estate crisis.


Mortgage Tenure Extended to 40 Years

Under the new measures, homebuyers will be allowed to take mortgages for up to 40 years, compared with the existing 30-year limit. The move is aimed at easing repayment pressure and improving housing affordability.


Developers Get More Financing Options

China will also support developers in raising funds through equity and bond markets. Developers facing financial pressure will be allowed to pay land purchase fees in instalments, helping improve their cash flow.

 


Shift Away From Pre-Sale Model

A major change is the proposed shift from the traditional pre-sale system towards completed-home sales.

Under the new framework, developers would collect only a small deposit from buyers. If a project is not delivered on schedule, buyers would have the right to withdraw from the purchase.


Why It Matters

China's property downturn has been marked by falling new-home prices, weak sales and developer debt problems. New-home sales by area have fallen by more than half from their 2021 peak, while concerns over unfinished projects have weakened buyer confidence.

The reforms are therefore focused not only on increasing credit availability but also on protecting homebuyers and reducing delivery risks.

 


What Happens Next

Local authorities are expected to standardise pre-sale conditions and strengthen safeguards for newly built homes. The measures could gradually reshape China's housing market by giving greater importance to completed properties and reducing developers' dependence on pre-sales.


Grihik Takeaway: China's shift toward completed-home sales highlights a broader lesson for property buyers — delivery timelines, developer finances and construction status can be as important as the property's price when making a home-buying decision.