• Thu
  • Aug 21, 2014
  • Updated: 2:48pm
PropertyHong Kong & China

Four more cities issue property cooling measures

Shenzhen among local governments to meet State Council deadline on property measures

PUBLISHED : Monday, 01 April, 2013, 12:00am
UPDATED : Tuesday, 02 April, 2013, 4:46am

Shenzhen, Tianjin, Jinan and Hefei have become the latest batch of cities to meet a central government deadline on issuing detailed measures to cool the property market.

Tianjin said a 20 per cent capital gains tax would be imposed on second-hand property transactions in the city. However, Shenzhen, Hefei and Jinan did not mention a capital gains tax specifically.

The State Council gave local governments until yesterday to say how they would implement measures announced on March 1 to cool the property market.

All of the cities also pledged to control growth in the prices of new homes. For example, Shenzhen and Tianjin said home prices would not be able to rise faster than the growth in per capita disposable income. Bank loans should also be restricted for those who wanted to buy a second home.

The cities' decrees follow Guangdong, Beijing, Shanghai and Chongqing in responding to the State Council's order.

Beijing and Shanghai announced plans on Saturday to put a 20 per cent capital gains tax on second-hand property deals.

Beijing and Shanghai announced plans on Saturday to put a 20 per cent capital gains tax on second-hand property deals

The Beijing regulations specified that single people who were registered Beijing permanent residents would be allowed to buy only one home from yesterday.

All residents who already owned one or more homes would not be allowed to buy another one.

At the start of last month, the State Council announced a proposed 20 per cent capital gains tax on second-hand home transactions.

Before the statement, the central government allowed home sellers to choose to pay a 20 per cent capital gains tax or a transaction tax of 1 to 2 per cent of the final sale price.

The new requirement strictly enforces the 20 per cent capital gains tax payment.

Share

More on this story

For unlimited access to:

SCMP.com SCMP Tablet Edition SCMP Mobile Edition 10-year news archive
 
 

 

 
 
 
 
 

Login

SCMP.com Account

or