More Measures Added to Curb Housing Rates
Additional measures were implemented in the city’s efforts to cool down the surging property market. Just before the holidays, buyers were enjoying a discount of up to 15 percent, when they got their mortgages from any five state owned banks which scrapped preferential interest rate for all first time home buyers. The said rate will not be applied after the Lunar New Year holidays.
This move compel second home buyer to pay taxes between 0.4 to 0.6 percent, while the Chongqing rates were at 0.5 to 1.2 percent and is dependent on the type of home that the buyer have purchased. Analysts said the property tax only adds a few thousand yuan to apartment cost, but will not stop prices from rising since more people migrate to cities increasing housing demands.
The local government implemented these measures to show that they are doing something to control the market. But experts doubt that this measure will have much effect on the property prices, and the much delayed introduction of the property tax. Shenzhen will be expected to impose this type of tax after Shanghai and Chongqing. The two cities have already launched their property taxes, when the State Council released the new cooling measures to slow down speculation in 30 cities.