Property tax changes buyers' plans
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The introduction of a property tax last Thursday in Shanghai has had an immediate impact on housing transactions.
In an online survey about 40 percent of respondents said the levy had changed their home purchase schedules.
According to property information website Soufun.com's survey, 57 percent of respondents believed the property tax would increase the costs of buying a house.
Half said the property tax rate of 0.6 percent was too high, while 17 percent said it was correct and 33 percent felt it was too low.
"The Spring Festival is usually a slack season for housing transactions and new property supply is also at a very low level," said Song Huiyong, research director of Shanghai Centaline Property Consultants.
New housing supply also dropped by a half last week and analysts said it was uncertain whether developers would follow their original sales plans, according to the survey.
Not many people will be interested in looking for property until late February and property developers are also unlikely to launch new apartments during this time, Song said.
The State Council last Wednesday ordered second home buyers to pay a 60 percent down payment to curb property speculation and also banned buying a third home in the city where a resident already had two, among other rules.
The State Council didn't say when the new measures would take effect or which cities should impose the new rules but said cities had to provide detailed regulations by the middle of February.
Shanghai may carry out stricter-than-expected rules to prevent housing prices from rising too fast, Song said.
