






{"id":25657,"date":"2021-11-04T06:20:47","date_gmt":"2021-11-03T23:20:47","guid":{"rendered":"https:\/\/www.asiapropertyawards.com\/?p=25657"},"modified":"2021-11-03T09:10:30","modified_gmt":"2021-11-03T02:10:30","slug":"news-of-higher-property-tax-in-china-alert-multiple-home-owners","status":"publish","type":"post","link":"https:\/\/www.asiapropertyawards.com\/en\/news-of-higher-property-tax-in-china-alert-multiple-home-owners\/","title":{"rendered":"News of higher property tax in China alert multiple-home owners"},"content":{"rendered":"<p><span data-contrast=\"auto\">There is little evidence in either city that the levy has worked to curb rising house prices\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<figure id=\"attachment_25658\" aria-describedby=\"caption-attachment-25658\" style=\"width: 1000px\" class=\"wp-caption alignnone\"><img decoding=\"async\" class=\"wp-image-25658 size-full\" src=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2021\/11\/original-621e1031-9649-4831-94e5-f19697043bd4.jpeg\" alt=\"\" width=\"1000\" height=\"665\" srcset=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2021\/11\/original-621e1031-9649-4831-94e5-f19697043bd4.jpeg 1000w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2021\/11\/original-621e1031-9649-4831-94e5-f19697043bd4-400x266.jpeg 400w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2021\/11\/original-621e1031-9649-4831-94e5-f19697043bd4-600x399.jpeg 600w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2021\/11\/original-621e1031-9649-4831-94e5-f19697043bd4-768x511.jpeg 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><figcaption id=\"caption-attachment-25658\" class=\"wp-caption-text\">In Shanghai, residents who own a second home are responsible for an annual levy of between 0.4 and 0.6 percent of the property\u2019s fair value. kevinconnors\/Shutterstock<\/figcaption><\/figure>\n<p><span data-contrast=\"auto\">According to <a href=\"https:\/\/www.scmp.com\/business\/article\/3154487\/shanghais-multiple-home-owners-look-offload-units-threat-higher-property\" target=\"_blank\" rel=\"noopener\">South China Morning Post<\/a>, news of plans to enact a property tax in selected regions has caused many multiple-home owners to look into offloading their units.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">One family, like many in Shanghai, is planning to sell one of their many apartments in case the city decides to raise taxes on residential properties.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">In efforts to cool the red-hot real estate market, the central government prepares to trial a new property tax in selected regions across the country.\u00a0Speculation was prompted following the recent announcement of a five-year pilot\u00a0programme.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">\u201cIt is the right time to cash out now before higher tax siphons off money from the family\u2019s money box,\u201d said Liu, an associate professor teaching philosophy at a local university.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">\u201cWe are already subject to a tariff and obviously we will continue to be the main target of the new mechanism, which will be harsher.\u201d<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">In Shanghai, residents who own a second home are responsible for an annual levy of between 0.4 and 0.6 percent of the property\u2019s fair value, calculated on the area that exceeds 60 square\u00a0metres\u00a0per\u00a0capita.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">In 2011,\u00a0local authorities of China\u2019s most populous and wealthiest municipalities, Shanghai and Chongqing, were\u00a0authorised\u00a0by the central government to collect taxes on real estate within their jurisdictions\u00a0to control price surges.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">However, a new government under Xi Jinping\u2019s presidency a year later postponed the idea of expanding the pilot.\u00a0\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Cathy Li, another multiple-home owner, said,\u00a0<\/span><span data-contrast=\"auto\">\u201cIt looks as if the new tax regime will be harsher now that the central government is determined to curb wild home price rises.\u201d\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">\u201cWe will have to take the opportunity to cash out. An extra tax bill of tens of thousands of yuan will be too big a financial burden on my family,\u201d she said.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Around 40 percent of households in major Chinese cities own at least two homes.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Moreover, the property tax is also part of Xi Jinping\u2019s \u201ccommon prosperity\u201d campaign to redistribute wealth and solve the\u00a0increasing\u00a0social inequality.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">\u201cThere is more and more talk about a potential increase in the tax rate in Shanghai. Some of our clients want to sell one or two flats as they are vacant,\u201d said Chen Zhongpeng, an agent at Lianjia in Shanghai.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Chongqing levies a progressive property tax that starts at 0.5 percent and goes up to 1.2 percent.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/www.asiapropertyawards.com\/en\/china-plans-to-roll-out-a-property-tax-pilot-plan-in-selected-regions\/\" target=\"_blank\" rel=\"noopener\"><strong>More: China plans to roll out a property tax pilot plan in selected regions<\/strong><\/a><\/p>\n<p><span data-contrast=\"none\">Nevertheless, both cities have shown little evidence that the levy has worked.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">The average home price in Shanghai has risen 155 percent since 2011, as stated by E-House\u00a0China R&amp;D Institute in Shanghai. On the other hand, Chongqing average prices had more than\u00a0doubled\u00a0since 2011.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<div class=\"entry-content\">\n<div class=\"entry-content\">\n<div class=\"entry-content\">\n<div class=\"entry-content\">\n<div class=\"entry-content\">\n<div class=\"entry-content\">\n<p><em>The Property Report editors wrote this article. For more information, email:\u00a0<a href=\"mailto:propertyreport@propertyguru.com\" target=\"_blank\" rel=\"noopener\">propertyreport@propertyguru.com<\/a>.<\/em><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>News of higher property tax in China alert multiple-home owners\u00a0<\/p>\n","protected":false},"author":12,"featured_media":25658,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[92,1],"tags":[137,2444,164,512],"class_list":["post-25657","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-property-report","tag-china","tag-levy","tag-property-tax","tag-residential","news_country-china","news_author-property-report"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - 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