The Chinese government has launched a series of tax and fee cuts to boost the real estate sector. But what do real estate developers think about the new package?
Chen Shun, president of China Sports Organization Group, a real estate development company, is in charge of more than 30 projects.
He said business has fallen in the past six months, and some projects have even been postponed. Chen said the new policy should stabilize market confidence in the future.
Chen Sun said, ‘It’s clearly stated by the government that the emphasis now is to stabilize market confidence in real estate, while the key is to boost the development of the sector.’
Another real estate developer says the new measures show government’s expectations for the real estate market.
Zhou Bin, vice president of Beijing Fengtongxiangrui Real Estate, said, ‘With this is a soft policy rather than a compulsive one, the government is encouraging real estate developers. The government hopes developers will face the market with more optimism, to find different ways to get past the downturn. It also shows the government’s wish to develop a sound real estate market.’
According to the National Bureau of Statistics, from January to November this year, sales of residential properties in terms of the floor area, dropped 18% from the same period of last year. The figure plunged 45% in Beijing, 40% in Shanghai and 26% in Guangdong province.