Guangzhou Caps New-Home Deposits at 5% of Total Price

Guangzhou is effectively converting the deposit from a developer cash-flow tool into escrowed buyer protection, tying release to completion filings and utility acceptance rather than to sales milestones. That matters most for smaller builders who have relied on pre-sale deposits to fund construction, since capital now stays frozen longer and outside their control. The open question is whether the 5% cap and supervised-account requirement push marginal developers toward slower launches or alternative financing, and whether other cities follow with similarly strict implementation rules.