 Delegates attend the opening ceremony for the Fourth Plenary Session of the 13th People's Congress of Shanghai Municipality in Shanghai, China, on Sunday. Shanghai, China's financial center, will this year prepare for a trial property tax, Mayor Han Zheng says. Bloomberg photo |
Shanghai, China’s financial center, will this year prepare for a trial property tax to curb “irrational and speculative” investment, Mayor Han Zheng said Sunday.
Han gave no details on how much the tax would be or when it would be implemented. China is expected to introduce a 0.8 percent tax rate, which will have a limited impact on the market, according to a Jan. 10 report by Nomura Holdings Inc.
“A Property tax will definitely come but it’s not the best way to control prices,” Fu Qi, an analyst at China Real Estate Information Corp, said today. “One of the major challenges in curbing prices is that incomes are on the rise and people have nowhere to invest their money.”
China has pledged to speed up trials for a property tax to rein in surging prices that have made housing too expensive for an increasing proportion of the population. Premier Wen Jiabao said on Dec. 26 that measures to rein in housing costs weren’t well implemented and that he would introduce more policies to crack down on speculation.
Shanghai will begin building 220,000 units of subsidized housing as it pushes plans to create affordable homes, Han said in the work report to the Municipal People’s Congress. The municipality aims to add 1 million units of subsidized housing from this year to 2015, he said.
The cities of Shanghai and Chongqing are expected to be first to roll out property taxes in China, according to the official Xinhua News Agency and Shanghai Securities Newspaper in reports on Jan. 10. Shanghai may introduce a tax on new homes in the first quarter while the southwestern city of Chongqing may impose a luxury-property tax at the same time, they reported.
Beijing will act “firmly” to curb rising property prices this year, including increasing housing supply, state-owned Xinhua News Agency reported, citing Mayor Guo Jinlong. The Chinese capital will try to finish 100,000 units of subsidized housing this year, he said. Beijing won’t join the trials of property tax, the Beijing News reported today, citing Deputy Mayor Ji Lin.
The property tax for Shanghai this year will have a minimal impact because the levy is expected to be low, said Michael Klibaner, head of China research at Jones Lang LaSalle Inc., the world’s second-biggest publicly traded commercial-property broker. He estimates China’s home prices will rise 5 percent to 7 percent this year.
The Century Weekly magazine reported earlier this month that the tax may be delayed following disputes between government departments.
The Chinese city of Chongqing plans to introduce the tax for both new and existing homes, Mayor Huang Qifan said in an interview with state television CCTV aired on Jan. 12, without providing further details.
Han gave no details on how much the tax would be or when it would be implemented. China is expected to introduce a 0.8 percent tax rate, which will have a limited impact on the market, according to a Jan. 10 report by Nomura Holdings Inc.
“A Property tax will definitely come but it’s not the best way to control prices,” Fu Qi, an analyst at China Real Estate Information Corp, said today. “One of the major challenges in curbing prices is that incomes are on the rise and people have nowhere to invest their money.”
China has pledged to speed up trials for a property tax to rein in surging prices that have made housing too expensive for an increasing proportion of the population. Premier Wen Jiabao said on Dec. 26 that measures to rein in housing costs weren’t well implemented and that he would introduce more policies to crack down on speculation.
Shanghai will begin building 220,000 units of subsidized housing as it pushes plans to create affordable homes, Han said in the work report to the Municipal People’s Congress. The municipality aims to add 1 million units of subsidized housing from this year to 2015, he said.
Ordinary citizens
“We will step up macro-control measures, prioritize the supply of non-luxury residential units to be owned and occupied by ordinary citizens, and prepare for the trial reform on property tax as required by the central government,” he said.The cities of Shanghai and Chongqing are expected to be first to roll out property taxes in China, according to the official Xinhua News Agency and Shanghai Securities Newspaper in reports on Jan. 10. Shanghai may introduce a tax on new homes in the first quarter while the southwestern city of Chongqing may impose a luxury-property tax at the same time, they reported.
Beijing will act “firmly” to curb rising property prices this year, including increasing housing supply, state-owned Xinhua News Agency reported, citing Mayor Guo Jinlong. The Chinese capital will try to finish 100,000 units of subsidized housing this year, he said. Beijing won’t join the trials of property tax, the Beijing News reported today, citing Deputy Mayor Ji Lin.
Price jump
Home prices in Shanghai jumped 26.1 percent in 2010 and those in Chongqing surged 29.4 percent, according to Soufun Holdings Ltd., the country’s biggest real estate website owner.The property tax for Shanghai this year will have a minimal impact because the levy is expected to be low, said Michael Klibaner, head of China research at Jones Lang LaSalle Inc., the world’s second-biggest publicly traded commercial-property broker. He estimates China’s home prices will rise 5 percent to 7 percent this year.
The Century Weekly magazine reported earlier this month that the tax may be delayed following disputes between government departments.
The Chinese city of Chongqing plans to introduce the tax for both new and existing homes, Mayor Huang Qifan said in an interview with state television CCTV aired on Jan. 12, without providing further details.
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