China property: Shanghai to devise its own easing measures to keep prices in check following policy moves by the central government
- Shanghai officials fear rampant fund flows into the housing market if the central government’s relaxed property-buying measures are fully implemented, sources say
- The Shanghai government is likely to implement only a handful of measures, such as lower purchase and capital-gain taxes on home transactions
City officials fear rampant fund flows into the local housing market if the central government’s measures are fully implemented, so the Shanghai government is only likely to lower purchase and capital-gain taxes on home transactions, three sources with knowledge of the local government’s thinking said.
But officials are yet to finalise the tax-reduction plan, they added.
“Shanghai’s home market is distinct from other cities because drastic policy easing would led to a massive capital influx, and push housing prices up quickly,” said Yin Ran, an angel and property investor in Shanghai. “Local officials are reluctant to see a roller-coaster ride in the city’s home prices.”
03:12
A look into China’s real estate market: unpaid workers and silent construction sites
Shanghai’s housing authorities declined to comment, saying that they would take some time to work out the policy’s finer details.