Beijing seeks to cool housing prices

To discourage speculation and stabilize housing prices, Beijing is adopting new measures to curb skyrocketing real estate prices, including a required business tax payment on sales of property held less than two years after purchase, state media reported. The rate was not reported and the requirement takes effect June 1. Other measures ask local governments to clarify prices and building sizes before granting land use rights; and to limit credit for property deals and restrict real estate developers' profits to a maximum of 3%. Developers who fail to build within a year after buying land will be assessed a fee, with stiffer penalties issued for each year the land is left undeveloped. .