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China Expected To Introduce Nationwide Property Tax.

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http://www.channelnewsasia.com/stories/economicnews/view/1127007/1/.html

HONG KONG : China is expected to continue with its tightening policy this year.

And this may include a new nationwide property tax - aimed at curbing rising home prices.

But some market watchers said property demand in China will remain robust, and they expect to see only a slight correction in prices this year.

China's central government is keen to clamp down on the country's heated property market, and there are some signs that these cooling measures are taking effect.

Recent data shows residential property prices in 100 major Chinese cities rose 0.4 per cent in April compared to the previous month.

That was below the almost 0.6 per cent climb the previous month, and the slowest monthly rise in eight months.

Just days ago, Chinese officials said the central government remains committed in its bid to bring down housing prices. Premier Wen Jiabao said China is determined to bring property prices in some cities back to reasonable levels.

Deloitte China's Real Estate Industry Practice expects China to initiate more cooling measures this year, including the possible introduction of a nationwide property tax.

But it does not expect residential property prices to see a significant dip.

Richard Ho, Real Estate Industry Leader at Deloitte China Real Estate Industry Practice, said: "We have seen some of the major developers, when they put out new project for sale, they try to keep the prices as a relatively lower level...I think the residential price may keep at this level or a slight correction. But it will not be a big, big decrease as compared to the current price."

Deloitte is also upbeat about the potential of offshore renminbi real estate investment trusts (REITs).

Last Friday, Hui Xian REIT made its debut on Hong Kong's stock exchange - the first yuan denominated listing outside mainland China.

But it had a lacklustre performance, falling 9 per cent on the first day of trade.

Still, Deloitte is positive about future prospects after authorities finalise how the IPO funds raised can be transferred back to the mainland.

Matthew Sze, Developers Leader at Deloitte China Real Estate Industry Practice, said: "People are waiting for the so-called renminbi cash pool. Once the cash pool, the introduction of the mechanism is in place, I believe...it will help the investor to really put their investment in this kind of structure. And in the end, the price will reflect its true value."

Deloitte believes REITs will eventually emerge as an alternative funding source for Chinese real estate developers and property companies.

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Good stuff , anything that makes poor quality Chinese slave made goods less competitive is a good thing.

Wages will have to rise to cover these new taxes they are bringing out.

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A nationwide property tax would be a good thing. It should target empty homes and apartments to encourage the owners to rent them out. The subsequent fall in rents would be a big benefit to the many poor people that don't own anything. In turn, that would help the government reduce CPI and social unrest.

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Good stuff , anything that makes poor quality Chinese slave made goods less competitive is a good thing.

Wages will have to rise to cover these new taxes they are bringing out.

It'll make living costs cheaper for the workers - how will that make wages increase? Also the 'poor quality goods' thing is a bit of a lazy stereotype. Sure they do make poor quality goods in China, but they also make high quality goods. Simply put - they make almost everything in China.

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Everything I hear about China on HPC and other headline-feeders seems to reassure me about investing there. A government that keeps taking sensible steps to tighten its economy while booming rather than stoke the boom, and will have lots of scope to loosen in the event of a bust.

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Everything I hear about China on HPC and other headline-feeders seems to reassure me about investing there. A government that keeps taking sensible steps to tighten its economy while booming rather than stoke the boom, and will have lots of scope to loosen in the event of a bust.

That all depends, if China already is a bubble then tightening is too late. We won't get to find out until the bust happens.

Although I view it more as the China govt seeking new revenue streams.

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Good stuff , anything that makes poor quality Chinese slave made goods less competitive is a good thing.

Wages will have to rise to cover these new taxes they are bringing out.

Erm it may seem terrifically archaic to you but in China many factory type jobs accomodation is included as is food quite often.

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A nationwide property tax would be a good thing. It should target empty homes and apartments to encourage the owners to rent them out. The subsequent fall in rents would be a big benefit to the many poor people that don't own anything. In turn, that would help the government reduce CPI and social unrest.

Its a very british thing that, high rents. Rent is cheap if you know where to look in ALL of Asia. For instance Hong Kong. Famed for incredibly high cost of renting.

The expats all complain of the uber rents because they want to live on HK island or in the other white ghettos. But you can live in Yeun Long (far) or Hung Hom, or SSP in fairly small flats and it is considerably cheaper. But nope they all choose to congregate around Wanchai, the mid levels and Tung Chung. You can walk a few hundred meters to a different district and it is considerably cheaper. Sheung Wan and Kennedy town are right next to Wanchai but nope they all congregate in the same places.

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Erm it may seem terrifically archaic to you but in China many factory type jobs accomodation is included as is food quite often.

So no men that work in these factories ever marry women? since so many Chinese women now stipulate home ownership as a prerequisite before marriage.

What a happy life those guys must lead.

I've been boycotting Chinese stuff for years , it is archaic to keep workers in such slave like conditions i agree with you.

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So no men that work in these factories ever marry women? since so many Chinese women now stipulate home ownership as a prerequisite before marriage.

With the current gender imbalances a large chunk of men can't get married.

What a happy life those guys must lead.

I've been boycotting Chinese stuff for years , it is archaic to keep workers in such slave like conditions i agree with you.

You make a massive misassessment though.

Ask yourself why Eastern Europeans are happy to come work min wage jobs in the UK. Why are they motivated to do this? They do it because of wage arbitage, after a few years they can take their money home and it triples or more in purchasing power when they take it home.

This is enough to set them up for a very good start in life. If the jobs were absolutely dead end with no future, why would anybody be motivated to actually do those jobs? I mean why leave the farmstead to go to the big city to work a hopeless job. When the alternative is that you can sit in your home village, working the land and claim government benefit/subsidy when you need to. Yes a form of JSA exists in China, the rules vary but you can claim if you go back to your home village. Internally in China the exact same thing happens. You go to Guangzhao work for a few years save your money go home build a house build a business.

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Erm it may seem terrifically archaic to you but in China many factory type jobs accomodation is included as is food quite often.

It's only a matter of time before we get the same here

This is the future for many:

tescopods.jpg

post-15752-0-66744700-1304679511_thumb.jpg

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70% of Chinese GDP has been in real estate.

You really have to wonder about the provenance of some of the pro-China posters on here. :ph34r:

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70% of Chinese GDP has been in real estate.

You really have to wonder about the provenance of some of the pro-China posters on here. :ph34r:

Yes but it's not like it's as bad as Spain for empty houses is it?

These amazing satellite images show sprawling cities built in remote parts of China that have been left completely abandoned, sometimes years after their construction.

Elaborate public buildings and open spaces are completely unused, with the exception of a few government vehicles near communist authority offices.

Some estimates put the number of empty homes at as many as 64 million, with up to 20 new cities being built every year in the country's vast swathes of free land.

The photographs have emerged as a Chinese government think tank warns that the country's real estate bubble is getting worse, with property prices in major cities overvalued by as much as 70 per cent.

http://www.dailymail.co.uk/news/article-1339536/Ghost-towns-China-Satellite-images-cities-lying-completely-deserted.html

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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