Shenzhen New Tax Policy Shows Little Impact on Housing Market
Shenzhen long anticipated housing policies was unveiled last Sunday a few hours before the national deadline of the local implementation which seem to mild to truly create reactions in the housing market. Residents and property experts said that the local implementation of t he national regulation levies a 20 percent tax on gains coming from home sales is a repetition of a previous regulatory policy expect the new one has a stronger diction.
The key point of the local implementation is the growth rate for new home prices must be kept below the growth rate of per capita income which would mean homes that will enter the housing market will face tougher controls. This will prompt property developers to change their pricing policies to comply with the new regulation. Residents that transferred ownership said that they felt little impact from the new policies and some employees of the Shenzhen Real Estate Ownership registration Center in Futian have yet to be informed of the changes to the local housing taxes.
There is still no news on how the Shenzhen tax policy will implement the 20 percent tax and avoid any excessive fluctuations in the demand in the market. Recent data from the Shenzhen Municipal Urban Planning, Land and Resources Commission showed the number of transactions of pre owned homes in the city that continues to rise several weeks after the Central Government announced its plans to increase taxes on home sales.