Many Chinese cities have announced that they will introduce new local regulations to cool the Real Estate Market of the People's Republic, currently characterized by very high prices. The new measures follow the stance taken by the central government which decided some time ago to put a stop to a situation that is becoming explosive, with limited results so far. After the example of Beijing and Shanghai, a number of municipalities have decided to identify tailor-made plans for the territory. Most municipalities have agreed that they will cap below the average disposable income. Among the measures applied, and widely debated nationally, there may be a 20% tax on the resale of the house, local taxes multiplied by the second or third property and higher interest rates on mortgages. Not everyone, however, is convinced that these measures will have an effect.
“If the 20% home resale tax is adopted, many savers will rush into the new home market. And the prices of new real estate will skyrocket,” says Tu Tengjing, a real estate consultant. So far, announcements and promises to cool the market have had the effect of accelerating deals before the new rules come into effect. According to the China Real Estate Index System, home prices rose 2,81% from February, up 18,06% year-over-year in March.
http://europe.chinadaily.com.cn/business/2013-04/02/content_16368804.htm
