BEIJING — Home sales in China hit their lowest share of new home sales in 18 years as more consumers balked after a number of cash-strapped builders halted construction.
Pre-sales allow real estate developers to recover their investment faster and make it easier to proceed with new projects. This has become the main way to buy a home in China and has helped expand housing supply. Even if the market expands and prices rise, homebuyers can buy at a discount.