Property tax reform plan welcomed

Better future

In addition to piloting property tax, central regulators and local governments have signaled that they want to work together for the nation's property market to progress toward stable and healthy development.

Emphasizing the guideline that "houses are for living in, not for speculation", China's financial regulators recently made clear their desire to safeguard healthy development of the real estate market and protect homebuyers' lawful rights, suggesting more fine-tuning will be made to stabilize the property sector.

In October, such fine-tuning regarding financial credit saw reasonable home purchasing demand restored. The improved financing environment for real estate companies is also effectively boosting market expectations.

Yan Yuejin, director of the E-house China Research and Development Institution in Shanghai, said that last month there was speculation in cities, including Shenyang, capital of Liaoning province, that regulators would loosen local home purchasing restrictions.

"Although such measures have not been announced for the time being, this shows the market expectations for loosened home purchasing policies, and that some local governments are trying to activate demand with measures other than credit and financing," Yan said.

He added that to ensure stable and healthy development of the real estate market, local administrations should be alert to any loopholes for speculation or illegal activities in property transactions.