Summary of Key Points
On August 28th, the real estate market welcomed two significant new policies:
1. Promoting the sale of existing properties (newly allocated land and projects without planning permits should prioritize the sale of existing properties; projects with permits are encouraged to sell existing properties as well).
2. The maximum mortgage term has been extended from 30 years to 40 years. It has also been clarified that loans for pre-sale properties must be disbursed after the completion and registration of the property, while loans for existing properties must be disbursed after the sale and registration.
These new policies have attracted market attention, but homebuyers have many questions: Can the sale of existing properties prevent projects from being unfinished? Is a 40-year mortgage really worth it? Through feedback from real estate agents, visits to properties, and discussions with experts, we have analyzed the actual impacts, advantages, disadvantages, and future trends of these new policies.
What Do the New Policies Actually Say?
These new policies are a set of measures aimed at addressing two main issues:
1. How to Promote the Sale of Existing Properties?
- For newly allocated land and projects that have not yet received a "Construction Project Planning Permit," the sale of existing properties must be prioritized.
- For existing properties that have already received planning permits, the sale of existing properties is only "encouraged" rather than mandatory.
- In simple terms, most new properties will be sold as existing properties in the future, but the current pre-sale properties will remain pre-sale properties and will not immediately change.
2. Changes to the Mortgage Policy?
- The maximum mortgage term has been extended from 30 years to 40 years.
- The timing of loan disbursement has become stricter: Loans for existing properties can only be disbursed after the property is registered; loans for pre-sale properties must wait until the property is completed and registered (previously, loans might be disbursed during the pre-sale phase, which increased the risk of unfinished projects).
The 40-Year Mortgage: Less Monthly Payment, But More Total Interest
The most notable change is the 40-year mortgage option. Let's do some calculations:
- Suppose you buy a property for 5.4 million yuan with a down payment of 1 million yuan and a loan of 4.4 million yuan at an interest rate of 3.05%:
- 30-year mortgage: Monthly payment is approximately 18,800 yuan, with a total interest of 2.35 million yuan.
- 40-year mortgage: Monthly payment is approximately 15,900 yuan, with a total interest of 3.22 million yuan.
Conclusion:
- Advantages: The monthly payment is lower by 2,890 yuan, which can be beneficial for young people who have just started working and have lower incomes, as it reduces their immediate financial burden.
- Disadvantages: The total interest is higher by 860,000 yuan, meaning the overall cost of the loan is higher over the longer term.
- Who Is It Suitable For? Experts suggest that this option is suitable for two groups of people:
- Young people who have just graduated and have starting incomes but expect to see future growth.
- Families with large immediate expenses (such as raising children or education) who need to reduce their monthly payments temporarily.
- More established families may find the 30-year mortgage more cost-effective.
Can the Sale of Existing Properties Completely Solve the Problem of Unfinished Projects?
Many hope that the sale of existing properties will eliminate the issue of unfinished projects, but the reality is:
- Future Properties Are Safer: New properties on new land and projects without planning permits will be sold as existing properties, so they are less likely to be unfinished.
- The Risk with Current Pre-sale Properties Remains: For existing properties with planning permits, the sale of existing properties is only encouraged, not mandatory. Therefore, there is still a risk of unfinished projects for properties you buy now.
Data shows that the proportion of existing property sales has increased, rising from 12.7% in 2020 to 35.4% in the first nine months of 2025, and in Shenzhen, it has even reached 59%. However, existing properties have not completely replaced pre-sale properties.
Has the Market Really Boomed Since the New Policies?
Real estate agents report that the number of property viewings has increased, but sales have varied:
- Agents in Shunyi say that the number of viewings increased after August 15th, and in Changying, the number of viewings on weekends increased from 2 to 4.
- However, sales have not increased accordingly. Agents in Shunyi note that there are fewer good properties available, leading to a decline in sales.
- The increase in viewings is not entirely due to the new policies; other factors (such as milder weather) have also contributed.
Sales pitches have also changed:
- Properties selling as existing properties emphasize that "all future properties will be existing properties, so you will need to wait two years, but you can move in now."
- Properties selling as pre-sale properties state that "the policies have little impact on us, and pre-sale properties will not be cancelled."
The Logic Behind the Policies: Promoting a "New Model" for the Real Estate Market and Preventing Risks
Expert Yan Yuejin explains:
- Core Goal: To prevent financial risks and create a healthy cycle of "sales, cash collection, and investment" in the real estate market. For example, the sale of existing properties reduces the risk of unfinished projects, and the 40-year mortgage lowers the barrier to entering the housing market, stimulating demand.
- Future Trends: The sale of existing properties will become more common, but it will not be a one-size-fits-all approach (the market cannot handle too many such changes all at once). Banks may introduce more flexible repayment options (such as only paying interest for the first few years).
- Subsequent Policies: Urban renewal and the transformation of urban villages will continue to drive demand, which will be key to supporting the real estate market in the future.
In summary, the new policies aim to loosen restrictions on the real estate market, but their effectiveness depends on the recovery of demand and market confidence. For homebuyers, whether to choose a 30-year or 40-year mortgage should be based on their financial situation, not just the lower monthly payment. Although existing properties are advantageous, buyers should still be cautious when purchasing pre-sale properties.
(The entire text is explained in plain language without using technical terms, hoping to help you understand the new policies.)