Chinese city Chengdu, the capital of the southwestern province of Sichuan has become the first city to relax rules for property developers in the region. A statement by the local housing authority noted several positives that Chengdu is willing to do for the property sector. This includes the following:
- Improving the efficiency of real estate approval: Implementing the process of price guidance, pre-sale permits, and open sales within a time limit, and reduce the overall approval time limit by more than one-third
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Encourage projects to speed up sales: Establishing a listing schedule, sorting out real estate projects that can meet pre-sale conditions during the year, list for service guidance and provide credit incentives for projects that are listed in advance -
Improve the efficiency of supervision and use of pre-sale funds: For issuer ratings above A, a foreign bank guarantee can be used. Increasing the upper limit of pre-sale funding by 5% if 75% of the project’s main structure is completed. Standardizing the district nodes’ withdrawal review process, reducing the processing time limit, and completing the review within 5 working days. Developers can withdraw 95% of presold funds held in escrow accounts when housing projects are completed -
Coordinate financial institutions to increase support: Increasing real estate credit lines, accelerating the issuance speed, ensuring reasonable funding needs for companies and people who need to buy houses, extending development loans and cutting interest rates for key enterprises
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