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

Everyday Economic News Reporter | Li Biao Zhang Rui Everyday Economic News Editor | Dong Xing Sheng

Housing issues concern every family.

On March 5th, the highly anticipated “Government Work Report” emphasized stabilizing the real estate market. Policies include city-specific measures to control new supply, reduce inventory, optimize supply, explore multiple channels to activate existing commercial housing, and encourage the purchase of existing properties mainly for affordable housing. Further reform of the housing provident fund system, optimization of affordable housing supply, and accelerated renovation of dilapidated housing are also highlighted.

At the same time, orderly promotion of safe, comfortable, green, and intelligent “good houses” is underway, including projects to improve housing quality and property management services. The “guaranteed delivery” whitelist system will be further utilized to prevent debt default risks. Additionally, foundational systems and supporting policies for new real estate development models are being advanced.

How should we understand the new development model for real estate? What are its key features? What suggestions are there for building the foundational systems and supporting policies for this new model? Addressing 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 construction 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 nuances 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 where nearly half of transactions are second-hand homes, the legal regulations governing existing property transactions at the national level urgently need improvement. He recommends that the State Council’s legislative authorities include the “Housing Sales Management Regulations” in the legislative plan and enact them as soon as possible. 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 mentions advancing the 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, multi-channel guarantees, and simultaneous 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 emphasizes building 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 home transactions will account for nearly 45%, with cities like Beijing and Shanghai seeing second-hand sales surpass new home sales. The traditional pattern of mainly new home sales is shifting toward a balanced approach with both new and second-hand homes. However, I believe the legal regulations for existing home transactions at the national level are still insufficient.

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

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

In 2017, the Ministry of Housing and Urban-Rural Development drafted the “Housing Leasing and Sales Management Regulations (Draft for Comments)” 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. I suggest that the State Council’s legislative authorities include the “Housing Sales Management Regulations” in the legislative plan and enact them promptly.

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

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

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

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

Second, improve the commodity housing sales system to regulate market order. Promote the gradual 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 construction before delivery, with disbursements based on project 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 listings, making offers, signing contracts, and recording transactions.

Fourth, establish an information disclosure system to promote transparency. Developers should disclose pre-sale permits, record-keeping information, location, price, size, mortgage status, and other relevant details. Existing home sellers should disclose property condition, ownership status, mortgage and other rights restrictions, and key information affecting prices. Housing transaction authorities should publish sales information, verification data for existing homes, and industry supervision information.

Fifth, establish an online signing and record-keeping system to strengthen government oversight. Develop a unified housing source information database, improve management functions such as online signing, transaction fund supervision, participant verification, information disclosure, and statistical monitoring. All housing sales—by developers, brokers, or self-conducted—should be recorded via the management platform, with recommended standard contract templates developed jointly by housing authorities and market supervision departments.

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

Seventh, establish a credit management system to strengthen industry integrity. Build a joint incentive and disincentive mechanism for trustworthiness and dishonesty in the real estate sector, linking the credit records of practitioners with sales, financing, credit reporting, and other systems, and publicly disclose credible or dishonest behaviors.

From these five aspects, promote a full-chain approach to building “good houses.”

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 regarding this?

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, to promote the entire chain of “good house” development.

[Image source: NBD reporter Chen Li]

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

Third, in materials. Accelerate the research and development of new building materials through “list-based” approaches, promoting over 50 types of innovative materials to enhance insulation, waterproofing, environmental friendliness, etc. Simultaneously, foster green building growth points and explore applications of internet, sensors, and other new technologies and products.

Fourth, in 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, in operation & maintenance, efforts include establishing safety inspection, safety management funds, and quality insurance systems to ensure lifecycle safety. Also, implement property service quality improvement initiatives, explore “property + lifestyle” models, and bring property services into homes to address key concerns and create warmer, happier communities.

Promoting AI, IoT, and other new technologies and products into homes and buildings

NBD: The report mentions orderly promotion of safe, comfortable, green, and intelligent “good houses.” What areas should the Ministry focus on to advance this?

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 development of 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 a “Guide for Building ‘Good Houses’,” promote the achievements of design competitions, and guide practical implementation—building new “good houses” and gradually renovating old ones to meet high standards, satisfying diverse housing needs.

Second, strengthen technological R&D for “good houses.” Deploy projects to address key technical challenges, develop future-oriented “good house” technologies, and establish a comprehensive technological achievement database. Collect and publish practical, innovative technologies for “good houses” to support affordable, high-quality housing.

Third, upgrade the housing industry chain. Use “good house” development as a new growth driver, selecting regions with a solid foundation to develop clusters across building materials, decoration, furniture, appliances, etc. Encourage developers and construction firms to transform into “good house” integrators, innovating product systems and service models. Leverage the broad application scenarios of housing tech, promoting AI, IoT, and other new technologies and products into homes and buildings, turning housing into a key platform for technological integration and application.