Tax Authorities Introduces New Methods in Evaluating Housing Values
After tax authorities have implemented new methods in evaluating the value of pre-owned apartments the Shenzhen housing deed tax have increased. Based on the new method the increase of the evaluation value will be based on market changes have increased around 500 to 600 yuan per square meter which is around ten percent of housing prices and deed tax has increased by 6 percent.
A Longgang apartment previously cost 8,560 per square meter and now prices at 9,100 yuan per square meter under the new method. Both seller and buyer will be paying the additional 3,612 yuan from business, income and deed taxes which is an increase of more than 6 percent. While pre-owned apartments in Shenzhen is at 21,820 yuan per square meter. Shenzhen still continues to tighten measures in restricting home purchases as city officials have unveiled the prices for new homes that was created in keeping the price increase in a lower price based on a resident’s disposable income.
Housing officials might increase down payments and loan rates of second home purchases but details are not yet released. As officials are planning to control housing price increase to a manageable 9 percent rate.
Also officials will make sure that there will be an ample supply of affordable housing available.