The real estate tax trial will start in Beijing, Chongqing, and Shenzhen and then in Shanghai following the World Expo, the report said, citing an unidentified person. Citigroup analysts Oscar Choi and Marco Sze wrote in a report that a “turning point” in the China property market is “unavoidable.”
China has introduced “the most draconian” measures in the past week, according to Deutsche Bank AG’s Greater China chief economist Jun Ma, after earlier steps including raising the amount of bank reserves failed to prevent a record surge in property prices in March.
Hedge fund manager James Chanos said this month China is “on a treadmill to hell” and that the real estate is a bubble that may burst as early as this year.
Bloomberg BusinessWeek reported that Michael Klibaner, head of research at Jones Lang LaSalle Inc., said in Shanghai that everyone agrees it is going to happen.The implementation of a property tax is “inevitable,” the only question is when and where.