Reasons and Possible Countermeasures for the Imperfection of Pre-sale System in China

Abstract

Ever since the presale mechanism was invented in 1953, it has been welcomed all over the world, especially in real estate purchases. In recent years, the real estate industry in China has been developing since the reform and opening-up policy made by Deng. As it developed, problems also arose as huge numbers of uncomplete building sites started to emerge throughout China's mainland, causing millions of people to end up in poverty or bankruptcy. The research is conducted to seek what actually caused the mentioned situations as well as find possible countermeasures to help avoid them to some extent. This passage lists several main existing problems including flaws in the system, vulnerable reaction systems, and the lack of government management. and to each of them, a correspondent measurement is given as a better solution or a tip for not repeating the same mistake. There are mature systems of presale in regions from Hong Kong to the USA.