China Considers Banning Pre-Sales, Global Developers Brace for Shockwaves
Key Takeaways China’s potential ban on property pre-sales could trigger a global real estate shakeup, undermining developer liquidity and market confidence. The disappearance of pre-sales, which account for much of developers’ working capital, has already led to halved property sales and visible fallout like unfinished buildings. The resulting financial stress could reverberate internationally, affecting places like Miami as foreign capital rapidly retreats. Ripple Effects Loom Over Global Real Estate China’s looming pre-sales ban leaves the iconic Beijing hutongs in shadow, threatening a seismic shock to real estate worldwide. Developers scramble as pre-sales—their lifeblood—vanish, fueling liquidity crises and collapsing confidence. Half of property sales gone since 2020, unfinished towers rise from the dust like concrete ghosts, while global financial capitals brace for contagion. Miami’s skyline could pay the price, as foreign capital drains fast. Unchecked, this gamble risks indus...