The new tax will be levied on residential and non-residential property, but not to rural residences.
An earlier pilot scheme was implemented in 2011 in two cities at rates from 0.4% to 1.2% on higher-end housing and second homes, and has not as yet been applied in more cities.
There are few details of the newly proposed property tax, Xinhua reported the plan was announced on Saturday. China’s property sector is under some pressure right now, with liquidity strains at developers (Evergrande the focus but there are many others) and the latest data showing overall price falls for homes in China (albeit small).
- a trial property tax could be tested by the end of this year in selected first- and second-tier cities that have hot real estate markets, most likely in Guangdong’s Shenzhen, Zhejiang’s Hangzhou, and the southern island province of Hainan.