BEIJING, June 1 -- Shanghai plan to impose a property tax on residential real estate had been submitted to the Central Government for review, the China Securities Journal reported yesterday.
The city may impose the tax on people without residence permits and those who do not file income tax declarations for three years or more, the report said, quoting unidentified people.
China's housing prices jumped by a record in April even after the government intensified a crackdown on speculation to limit the risk of an asset bubble and keep housing affordable. Beijing restricted residents to buying only one new home starting this month, making itself the first city to implement a policy authorized by the Central Government.
Shanghai was working on rules "more strict" than the Central Government's to cool down the local property market, Chen Qiwei, a spokesman for the city's government said Friday.
The National Development and Reform Commission plans to "gradually" promote a reform to the nation's real estate tax this year, according to a statement on the Central Government's Web site yesterday that didn't elaborate.
Shanghai developers had delayed sales of new residences because the municipal government had not yet announced its property policy, the Oriental Morning Post reported yesterday, quoting unidentified developers. Only 46 of a scheduled 96 developments were put on sale for the month as of Friday, reported the newspaper quoting Soufun.com, a real estate data research Web site.
China needed a property crash for stocks to return to a bull market because that would jolt investors into switching money to equities, former Morgan Stanley economist Andy Xie said at a forum in Beijing on Thursday. Property prices in 70 Chinese cities jumped 12.8 percent in April, the biggest gain since data began in 2005.