China Property: Developers and Unfinished Homes — 2026-10-29
China's property sector shows mixed signals this week as 13 cities implement new sales regulations aimed at shifting from pre-sales to completed home sales, while distressed developers accelerate debt restructuring efforts. Evergrande liquidators announced plans for their first creditor payouts in 2027, marking a significant milestone in the ongoing crisis resolution.
China Property: Developers and Unfinished Homes — 2026-10-29
Top developments
13 Cities Implement New Home Sales Rules
From October 24 to 26, major cities including Suzhou, Hefei, and Chengdu released detailed implementation rules for the national commodity housing sales system reform. These policies, initiated on August 28, prioritize completed home sales over pre-sales and strengthen management of unfinished projects. The move aims to reduce sector leverage and restore buyer confidence by shifting risk away from unfinished developments.
Evergrande Liquidators Plan First Payouts for 2027
Liquidators for China Evergrande Group announced on October 22 that they have recovered less than 1% of the $46 billion owed to creditors. They aim to begin distributing these recovered funds in the first half of 2027, nearly three years after the winding-up process began. This timeline highlights the prolonged nature of resolving the largest default in China's property crisis.
Distressed Developers Accelerate Debt Restructuring in October
October has become a critical window for distressed developers to finalize debt solutions. Rongsheng Development proposed using physical assets to settle 3.8 billion yuan in onshore debt, while Agile Group disclosed major progress in its offshore debt restructuring. Landsea also announced that a creditor meeting regarding its $2.4 billion offshore debt restructuring is scheduled for November 23.
Local view
Local media outlets such as 21st Century Business Herald report that the "Golden September, Silver October" sales season showed signs of stabilization in tier-one cities, with new home prices in first-tier cities rising 0.1% month-on-month. However, the expansion of completed home sales policies to 13 cities is reshaping developer investment logic, with heat remaining in core city land plots despite broader market adjustments.
Context & numbers
Data released by the National Bureau of Statistics for September showed that new home prices rose in 17 of the 70 major cities, an increase from the previous month. Second-hand home prices rose in 9 cities, up from just 3. This data suggests a potential bottoming out in select markets, although the overall slump persists.
On the radar
- November 23: Landsea creditor meeting to discuss $2.4 billion offshore debt restructuring.
- H1 2027: Target date for Evergrande liquidators to begin distributing recovered funds to creditors.
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