Preferential tax policy implemented to spur residential property sector

Preferential tax policies — including lowering transaction costs — have been announced to actively support housing demand and ease financial strain among real estate developers, according to an announcement jointly published by the Ministry of Finance, the State Administration of Taxation and the Ministry of Housing and Urban-Rural Development on Wednesday.

Yan Yuejin, deputy head of the Shanghai-based E-House China R&D Institute, said the policies will be sweepingly beneficial, as they reduce taxes for homebuyers, homeowners and property developers at the same time.

According to the notice, the favorable 1 percent deed tax was extended to apartments sized at or below 140 square meters against the previous requirement of 90 sq m or below for both first and second homes nationwide.