After more than a decade of blistering growth, a cold front is setting in over China's once red-hot property market. But with so much of the country's social wealth and financial resources locked up in real estate, many are deeply concerned about the possible ramifications of a slowdown.

In today's tense climate, every little step by authorities has the potential to send shock waves through the market. Indeed, recent news on one land deal in Shanghai led many to speculate that the city's government was on the verge of abolishing home pre-sales rules.

As local media outlets reported Wednesday, land management authorities in Shanghai stipulated that housing units built on a recently auctioned land parcel in Huangpu district could only be sold after construction is completed. This, the reports mentioned, marked the first time that local authorities in the city have instituted such a demand. As many know, nationwide pre-sales regulations have allowed millions of people in China to purchase homes prior to groundbreaking or during construction.

Several took this news as an indication that Shanghai was launching a new pilot program that could revolutionize China's property industry. Many who leapt to such conclusions were equally convinced that the market had surely reached a point of maturity where such rules were no longer needed.

In the fullness of time, such opinions may prove to be accurate. Deepening anxieties about China's housing market will surely lead to policy action at some point in the not-too-distance future.

For the moment though, this particular land auction is little more than an isolated instance of policy fine-tuning. In actuality, it would be nearly impossible to cancel pre-sales any time soon. For one thing, developers, banks and local governments depend on pre-sales as a vital source of revenue. At the same time, local authorities have no right to abolish pre-sales unless relevant laws are first amended.

Home pre-sales were first introduced in China back in 1994 as a way to help developers overcome a period of sluggishness. Indeed, letting developers receive cash in advance for properties that were still being built not only helped them shore up their faltering finances, it also boosted housing supplies as well.

This practice has greatly eased capital pressures on developers. Early buyers allow builders to start recouping their expenses almost immediately. New projects can get underway at a much faster pace, since developers don't have to worry about financing from start to finish before they begin construction. Banks benefit too: more construction leads to more lending and pre-sales revenues give developers a cushion to borrow against. And, last but not least, local authorities also win from selling land.

Pre-sales haven't been completely without problems though. Over the years, there have been several instances of developers fleeing with millions of yuan derived from sales of homes that were never completed. At the same time, it is not hard to find stories about buyers being hamstrung by construction delays, sub-standard quality and broken contractual terms.

Every now and then, a particularly egregious offense against pre-sales buyers will spark discussions about ending the practice entirely. By and large though, existing pre-sales mechanisms are generally effective - even if they could use some updating. If changes are made, regulators should improve supervision over the use of home buyers' funds. As is common in many mature markets, China should establish a third-party institution to hold advance payments in escrow until construction is completed. Shandong Province took such a step in 2012, when several local cities launched an experimental program which saw pre-sales payments placed in custodial accounts.

Meanwhile, smaller developers who are most vulnerable to weakening market fundamentals should strictly focus on projects that are within their capabilities. Corner-cutting and over-promising will only lead to disaster.

If the market continues on its current trajectory, concerns about China's housing market will only become more acute. As new risk factors emerge, authorities will surely take action with reforms. Whatever steps are ultimately made, it won't be easy to roll back pre-sales over the near- to mid-term though. Such a move would require efforts from many institutions and departments. But any change that closes problematic loopholes and encourages healthy market development should be supported.

The author is a reporter with the Global Times.