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Realistbear

China To Slow Destructive H P I With Taxes

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http://www.iii.co.uk/news/?type=afxnews&ar...&action=article

BEIJING (XFN-ASIA) - China is planning to launch a series of tax measures soon to cool the real estate market, the official Shanghai Securities News reported, citing an official from State Administration of Taxation (SAT).
From the second quarter of 2005, the government has imposed controls on the property market, including a ban on transfer of unfinished apartments, raising mortgage rates and slapping a 5 pct tax on profits on houses lived in for less than two years.
SAT is considering to extend the two-year period on the 5 pct tax, the official who was not named, was quoted as saying.
"SAT will launch a series of tax policies to control the real estate market according to the requirement of State Council (cabinet)," the official said.
Property prices in some big Chinese cities have been rising aggressively, leading to a shortage of affordable housing units.

It may take a new Chancellor as Gordon's miracle economy has been built on the foundation of HPI and consequential MEW. Pop his bubble and his legacy of massive HPI vanishes too.

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That article is not quite correct. The 5% tax is on the entire selling price of any property sold within 2 years. After 2 years the 5% just applies to the profit made when selling. Designed to stop flipping.

I live in Shanghai (as you can tell) and the bubble has well and truely burst here. People who bought off plan are now camping outside the developers offices and demanding their money back "as they were never informed that property prices could possibly go down"!

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  • 302 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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