China may announce a long-term property policy plus a home-purchase tax in October.
State-owned investment house China International Capital Corporation warns heavy economic development reliance on land transactions will harm economic productivity in the long run.
The central government may announce a long-term mechanism to stabilize the property market in October, China Business Journal reported.
“It will be more like a guide to soothe the real estate market but [will contain] not very drastic measures with only a few of them legally binding,” the journal quoted a housing ministry official as saying.
To be in line with the mechanism, the property tax pilot program based on the Hangzhou model is likely to start in October. Tax will be levied on anybody possessing more than 60 square meters of residential property.
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