Policy makers at the recently concluded Central Economic Work Conference (CEWC) have recommended the construction of more low-cost houses and reducing the tax burden for individual home purchases.
Yang Shaofeng, managing director, Conworld, a Beijing-based property broker said, property deed tax, business tax and income tax are major hurdles for new home buyers and also in second-hand house deals.
The taxes on buying a second-hand apartment could be around 7% or even near 10% if the apartment is larger than 140 sq m.
Yang Shaofeng said, ‘The Ministry of Finance, State Administration of Taxation and the Ministry of Housing and Urban-Rural Development may reduce the taxes soon, in line with the central government decision in the CEWC. The move will trigger housing demand and boost property developers’ profits.’
Meanwhile, sources told China Daily that the China Real Estate Association has submitted a proposal to the National Development and Reform Commission seeking more favorable policies to help the troubled sector.
Source: China Daily