采访/刘惠 编辑/李谦 后制/周天
China Releases New Polices to Curb Real Estate
China’s first-tier cities have continued to release local
new regulations on combating speculative house buying.
They impose restrictions on the eligibility of homebuyers,
mortgage loans, and personal income tax on home sales.
Beijing’s rules are labeled as “the most stringent ever”.
Will the official real estate policies deliver the desired
results? Various parties hold significantly different views.
On March 30, Beijing released local
by-laws on the real estate market.
The rule lifts home purchase restrictions, loans and taxes,
which are deemed “the most stringent policy in the history”.
It provides that since March 31, single Beijing
adults are only allowed to buy one house.
The regulation increases the down
payment of the second house loan.
Individual income taxes for second
-hand housing sales rise to 20%.
No personal income tax applies to sales of
houses with over five year of personal usage.
On the same day, Shanghai and Chongqing
published their implementation rules.
Both are further tightening homebuyers
eligibility, loans, as well as raising personal
income tax for second-hand housing sales.
On February 20, China’s State Council released
five policies on real estate market controls.
It urged the expansion of home-purchase restrictions,
and to curb speculative home buying nationwide.
On March 1, the State Council announced
a set of by-laws for 2013 Five Policies.
It stipulates that second-hand housing
sales are subject to an income levy of 20%.
This made the real estate and stock market plummet.
Lots of property owners have rushed to
complete sales before the by-laws go into effect.
Thus, second-hand housing sales have
suddenly soared in China’s first-tier cities.
Gong Shengli, Chief Researcher at China Realities
Insight Journal: “Multiple house owners are now rushing to sell their properties.
Meanwhile, those without houses
have entered the market enormously.”
Provincial by-laws have continued to be released.
Whether these new policies can successfully
curb speculative house buying or not,
has now become the attention of public focus.
The issue has sparked a heated
debate among netizens in China.
Netizens in support believe that the policy will effectively
limit speculative house buying, and stabilize house prices.
A netizen posted, “The new policies
precisely target real estate speculators.
If they continue to stock houses,
they’ll face paying property taxes.
As most ordinary citizens only have one house,
they’re exempt from 20% income tax on house sales.
So the new policies won’t affect
ordinary citizens’ home buying.”
Another netizen said, “the new policies won’t
make a difference in lowering housing prices.
Housing prices will naturally
fall with reducing land-use fees.
Some netizens asked, “Why aren’t
land sales levied with the 20% tax?”
Gong Shengli says that such government
interventions are contrary to market rules.
He thinks the official policies will hardly play a big role.
Gong Shengli: “The market
economy shall be a free economy.
Now in China, they have changed the
economic elements, rules, and direction.
This has never appeared in other countries.”
Gong Shengli adds that China’s real estate
market is certainly not a market economy.
In recent years, the authorities have tried to curb the
property market, but housing prices continue to rise.
Gong Shengli: “If this continues, China’s economy,
especially the property market, will turn into a strange thing.
It will be against all market rules.
So in the near future, China’s real estate
market will face more and bigger troubles.”
Gong Shengli gave an example of the financial
crisis in Latin America in the late of 20th century.
Lots of people withdrew their money from banks.
Then, Argentina and some other countries began to
limit withdrawals, but this lead to more cash withdrawals.
Later, bank withdrawals were no longer limited
worldwide, and the financial crisis was easily solved.
By contrast, China’s many existing
policies on real estate are all restrictions.
This made the market continue to narrow.
It is hard to forecast the result from
the implementation of the new polices.