Shenzhen Existing Homes Sales Surge Ahead of Tax Hike

Shenzhen is reducing the time between assessments to six months as of April 1. The shorter gap between assessments could cause taxes to rise 50% to 100% based on recent home price increases, which would represent a significant rise in taxes for short-term speculators. Additionally, transaction taxes will rise. This looming tax hike led to a surge in sales ahead of the increase:

According to the Shenzhen Centaline research center monitoring, Shenzhen March existing housing turnover of 18,706 units, a substantial increase of 120%, closing an area of ​​about 1.6 million square meters, a month-on-month surge of 136%, a record high. At the same time, the price rise, the average price of second-hand up to 56,149 yuan / square meters, the month-on-month surged 6.75 percent, the largest increase since July 2015.

New home sales, which aren't affected by the tax changes, went in the other direction last month:

Yishoufang regard, subject to policy control is expected, trading volume fell sharply. According to the Shenzhen Centaline research center monitoring March 4461 sets of residential sales, a decline of 17.5%, closing an area of ​​464,800 square meters, a decline of 17%. For the next three months Shenzhen market situation, the industry is widely expected, due to policy tightening, new home transactions will weaken in the coming months.

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