Real estate sector needs root-cause reforms
China DailyA residential property construction site in Yantai, Shandong province. While these moves will stimulate the real estate market's recovery in more third- and fourth-tier cities, measures such as urban village renovation projects, construction of government-subsidized and affordable housing, and optimized supply-demand mechanisms would further improve the housing sector's structure and ensure low- and middle-income individuals have access to affordable housing. One reason for the real estate sector to go through ups and downs was local governments' focus on the competitive trading mechanism for land-use rights against the backdrop of an imperfect regional tax system. The property tax system could help stabilize the market and provide a steady source of revenue to local governments, which can use the income to optimize public services and improve the investment environment. To levy real estate tax, however, local governments have to provide higher-quality public goods and calculate, between intervals, the tax base, which means the local governments have to improve public services.
History of this topic
Preferential tax policy implemented to spur residential property sector
China Daily
China announces tax relief measures to stabilize real estate sector
China Daily
China announces tax relief measures to stabilize real estate sector
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China exploring reforms in housing sales system to revitalize property sector
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Experts see real estate stability
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New real-estate development mode key to solving housing market woes
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