2012-02-18

China to widen property tax base; no changes in short or long-term housing policy

住建部首提加快推进房产税 试点范围扩大

The government plans to accelerate the move towards property taxes and also plans to widen the areas covered by the policy. Currently Shanghai and Chongqing have implemented the tax. The tax isn't large enough to kill the market, but it may be enough to kill speculation.

住建部政策研究中心:楼市调控长期短期都不动摇

China's Ministry of Housing and Urban Policy Research says long and short-term policy will not waver.

业内预计房价将延续下滑态势 二季度或成楼市分水岭

Finally, the industry is turning even more pessimistic. As I've pointed out in previous real estate posts, the common wisdom is that the housing market will stabilize in the second half of 2012. Now, some are starting to say the second quarter will be a watershed. If volume doesn't pick up in the next quarter (and volume does lead price, which is why the big declines on the order of 50+% around the country look ominous) things could turn very bad in the second half, should the government fail to adjust its policy.

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