Beijing and Shanghai authorities have taken a significant step towards revitalizing the real estate sector by announcing tax cuts on larger house transactions. Starting December 1, the new measures aim to lower transaction costs, thereby encouraging sales and stabilizing the property market.
The policy changes eliminate the previous distinction between \"ordinary\" and \"non-ordinary\" housing, which was based on properties exceeding 144 square meters. By removing this difference, the tax burden for transactions involving larger homes will be reduced, making it more attractive for homeowners to list and sell their properties.
\"The reduction in selling costs for homeowners is expected to boost listing and sales activity, increasing the availability of high-quality second-hand properties. This, in turn, will provide homebuyers with more options and positively impact the market,\" said Yan Yuejin, deputy director at E-House China R&D Institute.
These tax adjustments come amid a sluggish property market, prompting Chinese mainland authorities to introduce a series of measures across taxation and finance sectors to stimulate demand. On November 13, additional incentives were announced, including enhancements to deed tax, land appreciation tax and value-added tax, all aimed at supporting the steady and healthy development of the real estate sector.
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Beijing, Shanghai cut tax on larger house transactions to boost sales
cgtn.com
