Real Estate

Real Estate Agency in Qingdao, on 11th Oct 2012.

20% levy on capital gains by sellers to rein in housing prices

In one of its sternest measures to hold back the rise of housing prices in major cities, the State Council, or China's cabinet, on Friday ordered that a 20 percent individual income tax be levied on capital gains by home sellers.

This is the latest regulation following the cabinet's meeting on Feb 20 about the urban residential housing market.

Currently, only a 1 percent individual income tax is levied on the sale price, much lower than the 20 percent tax on the difference between the sale and purchase prices.

In the last 10 years, the number of new house grew explosively, but one third of 225,000,000 Chinese urban households still live in the houses without kitchen and fluctuation conduit.

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Photo shot at the end of July 2012, look over Shanghai zhaozhoulu slum for Shanghai downtown.

The number of new property sold in Beijing returned to the level before the government's property tightening measures and might hit a 16-month high in May, according to new data.

More than 8,500 new apartments were sold in the city in the first 26 days of May, up about 25 percent from the same period in April, statistics released by the Beijing Municipal Commission of Housing and Urban-rural Development on Thursday have showed.

Meanwhile, sales of second-hand property increased 18 percent month on month to more than 9,900 units in the same period, up nearly 50 percent from the same period of last year.