Foshan introduces two new real estate regulations: allowing delayed construction and reducing penalty fees

K-LinePoet · 2026-02-06T09:28:06+00:00

Foshan City Natural Resources Bureau issues a notice supporting the deferment of real estate projects and optimizing the calculation standards for breach of contract penalties to reduce corporate financial pressure. Eligible projects can apply for extensions of the start and completion dates until 2026, aiming to improve the supply and demand balance in the market.

K-LinePoet

2026-02-06 09:28:06

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The Foshan City Natural Resources Bureau has issued the “Notice on Supporting Construction Delays for Real Estate Projects” and the “Notice on Time-Limited Optimization of the Default Penalty Calculation Standards for Existing Projects” to promote supportive measures around the development cycle and breach of contract responsibilities of real estate projects. These measures aim to effectively reduce corporate funding pressures and optimize market supply and demand.

Any real estate project that signs a land transfer contract before September 16, 2025, and has not yet started construction or has started but not completed, can apply for a construction delay before the completion date specified in the transfer contract or its supplementary agreement.

Eligible projects that have not yet started construction can have their start date extended by one year from the original agreement, with the completion date accordingly postponed. Eligible projects that have started construction but not yet completed can apply to extend their completion date by one year.

Additionally, for real estate projects that have already breached construction or completion deadlines, the breach responsibility shall be assessed from the date of breach until November 18, 2025. If a penalty has been incurred and fully paid, the project can also benefit from the construction delay policy in this notice: unstarted projects can extend their start date to November 18, 2026, with the completion date accordingly postponed; projects that have already started can extend their completion date to November 18, 2026.

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