New Property Tax Unlikely to Affect Home Prices
Real estate agencies are saying that the city might soon implement a new property tax after a Central Government announcement that increases the number of cities piloting property taxes this year. Although realtors have not seen the possibility that the property tax easing the rising home prices in Shenzhen for a short term.
A real estate agent based in Nanshan said that the residential property tax will still continue to increase prices of pre owned homes since home sellers will shift the cost of the tax to buyers. The property tax could also urge owners of multiple properties to sell homes thus home prices will decline because of excessive supplies. While another realtor said that he doesn’t expect home prices to drop if the residential property tax is implemented. He predicts that prices of pre owned homes will continue to increase especially those houses with school seats.
Shenzhen is now ready to implement the Central Government policy in piloting a residential property tax. The home tax law was a hot topic since March after the Central Government have tighten regulations on home purchases