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Business Property

Stimulus: Market boosting measures

The central government, as well as many local governments, enacted measures to boost property markets in 2008.

Central government measures:

Stamp duty of 0.05% waived.

Land value-added tax of 0.5% of selling price waived.

Down payment for first-time homebuyers reduced to 20% from 30% of price; Mortgage rate set at 0.7 times the benchmark interest rate.

Deed tax for first-time buyers of residential units below 90 square meters lowered to 1% from 1.5% .

Buyers of second homes given same favorable mortgage rates as first-time buyers if their current home is smaller than the city average on a per capita basis.

Business tax of 5.5% on property sales waived if the unit has been held for two years. The period was previously five years.

Five interest rate cuts over four months, bringing the benchmark one-year lending and deposit rates to 5.31% and 2.25%, respectively.

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