Dec. 10 (Bloomberg) -- China issued policies to curb property speculation after home prices rose at the fastest pace in more than a year and Premier Wen Jiabao pledged support for affordable housing.
The government will impose a sales tax on homes sold within five years of their purchase, increasing the time period covered by the charge from two years, the State Council, the nationâs cabinet, said yesterday after a meeting chaired by Wen. China reduced the penalty period of the tax to two years from five in January of this year to stem falling prices.
A record $1.3 trillion of bank lending that helped revive Chinese economic growth to 8.9 percent in the third quarter has also fueled concerns of a bubble in the nationâs property market. Home prices in 70 major Chinese cities climbed at the fastest pace in 14 months in October, according to government data.
âThe Chinese central government wants to gradually control the bubble in the real estate market,â Andy Xie, former Morgan Stanley chief Asian economist, said by phone.
November sales for China Vanke Co., the nationâs biggest developer by market value, rose 46.5 percent from a year earlier to 5.23 billion yuan ($766 million), the company said this week. Sales in the first 11 months rose 36.2 percent. A measure of property developers traded in Shanghai has more than doubled this year.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aoBHqPr_OJ68&pos=3
Seems, the Chinese have learnt some things...
The government will impose a sales tax on homes sold within five years of their purchase, increasing the time period covered by the charge from two years, the State Council, the nationâs cabinet, said yesterday after a meeting chaired by Wen. China reduced the penalty period of the tax to two years from five in January of this year to stem falling prices.
A record $1.3 trillion of bank lending that helped revive Chinese economic growth to 8.9 percent in the third quarter has also fueled concerns of a bubble in the nationâs property market. Home prices in 70 major Chinese cities climbed at the fastest pace in 14 months in October, according to government data.
âThe Chinese central government wants to gradually control the bubble in the real estate market,â Andy Xie, former Morgan Stanley chief Asian economist, said by phone.
November sales for China Vanke Co., the nationâs biggest developer by market value, rose 46.5 percent from a year earlier to 5.23 billion yuan ($766 million), the company said this week. Sales in the first 11 months rose 36.2 percent. A measure of property developers traded in Shanghai has more than doubled this year.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aoBHqPr_OJ68&pos=3
Seems, the Chinese have learnt some things...