A property tax could be coming to China

Move by the government would be an attempt to stabilize the country’s housing market

TRD New York /
Jan.January 23, 2018 10:30 AM

Beijing, China

Chinese homeowners may soon get to complain about one of the same things American homeowners do: property taxes.

In an effort to stabilize the country’s notoriously volatile housing market, the Chinese government is considering establishing a property tax, as experts say the lack of one is a major reason why its housing market is so unstable, according to the New York Times.

The move is not a sure thing, but finance minister Xiao Jie wrote in the official Communist Party newspaper late last year that leaders expressed support for establishing a property tax at a party meeting under the not-very-catchy slogan “Legislation first, full authorization, move forward step by step.”

Real estate comprises almost 75 percent of assets for the Chinese but is also a factor in some of the largest booms and busts in the country, with investors eager to pour money into housing and mortgage lending skyrocketing over the past two years.

The lack of a property tax stems from the country’s Communist takeover in 1949, when owning land was at first restricted and then banned. China has also historically had a hard time figuring out who owns what properties, but its Ministry of Land and Resources said in September it had compiled a land ownership database.

Property prices fell by 0.3 percent in Beijing and Shanghai between November 2016 and November 2017 after years of double-digit growth, fueling fears of a possible mortgage crisis, but the government could loosen housing regulations to increase prices. [NYT]Eddie Small


Related Articles

arrow_forward_ios
New York’s real estate market is becoming two different stories: Manhattan, where deals are falling — and the suburbs, where demand is spiking. (iStock, Unsplash)

Manhattan is cold, the suburbs and Brooklyn are hot: Here’s what the resi market looked like in July

Manhattan is cold, the suburbs and Brooklyn are hot: Here’s what the resi market looked like in July
Home sale price declines are expected for July, after a recent bump, according to a CoreLogic report. (iStock)

Home sale prices got a bump, but a drop is coming: Report

Home sale prices got a bump, but a drop is coming: Report
(Images courtesy of Victor Group)

The Getty condo chops prices up to 53%

The Getty condo chops prices up to 53%
442 Union Street and 257 Berry Street (Google Maps)

Brooklyn’s luxury market reaches new pandemic high

Brooklyn’s luxury market reaches new pandemic high
Marwan Kheireddine (inset), Jennifer Lawrence and 400 East 67th Street (Getty, Compass, BDL Accelerate)

Jennifer Lawrence’s Upper East Side PH sold at 37% loss

Jennifer Lawrence’s Upper East Side PH sold at 37% loss
Senate Minority Leader Chuck Schumer and Senate Majority Leader Mitch McConnell (Schumer by Tasos Katopodis/Getty Images; McConnell by Ting Shen/Xinhua via Getty)

Schumer v. McConnell on SALT: Who’s gonna give?

Schumer v. McConnell on SALT: Who’s gonna give?
111 Leroy Street and 817 Fifth Avenue (StreetEasy, Google Maps)

Luxury deals plummet in Manhattan — again

Luxury deals plummet in Manhattan — again
From left: Jared Kushner, 715 Park Avenue, Deutsche Bank CEO Christian Sewing, and Rosemary Vrablic (Credits: Kushner by BRENDAN SMIALOWSKI/AFP via Getty Images; 715 Park via Google Maps; Sewing by by Thomas Lohnes/Getty Images; Vrablic by PAUL LAURIE/Patrick McMullan via Getty Images)

Apartment sale to banker for Trump and Kushner probed

Apartment sale to banker for Trump and Kushner probed
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...