China cuts property taxes to spur house sales

From 22 February 2016 China will lower property taxes as part of its plans to encourage demand for the country’s oversupply of housing, although most of the adjustments will not apply to the Beijing and Shanghai markets. The Ministry of Finance has indicated a 1% deed tax rate for first and second homes less than 90m2 and a 1.5% for larger primary homes jumping to 2% for second homes in the larger category.

Chinese woman in matching pyjamas standing near a replica of the Effel Tower in Tianducheng, a luxury real estate development located in Hangzhou in eastern China's Zhejiang province. Photo: AFP