The local government will issue benchmark prices for properties in the city. The benchmark prices refers to the housing prices in a given location during a certain period. Under a new regulation, properties that are priced 1.2 times higher than the base price will be classified as non-standard residential properties. Developers of these properties will have to pay a 3%tax. The tax rate for standard residential properties is 1.5%.
Experts believed that the benchmark price could help curb surging housing prices to some extent.
Over 1.3 million square meters of properties are being be constructed in Guangzhou, offering around 15 thousand flats. The local government also plans to develop more than six thousand low-rental housing, to help control house prices by adding supply.