Introduction of property tax in China can cause domestic market turmoil: expert says

Beijing. Jul 19. Silkroadnews - Honorary vice president of the China Real Estate Association Tong Yuezhong said the introduction of real estate tax at the moment can cause great economic turbulence in the domestic market, Global Times writes.
Thus, housing management bodies are expected to build a long-term mechanism for the country’s property sector.
According to Tong Yuezhong, the restrictions on the purchase of housing, loans and prices in China actually serves as a signal for the growth of housing prices in the future.
The expert noted that the Chinese government is expected to create a long-term system for the domestic real estate industry.
A sharp introduction of the property tax, which is likely to be quite high, is likely to have a major impact on the property sector, Tong said. If this is done in the near future, it would cause economic turbulence in China, he said, adding that many industries will be affected, including the production of steel, cement, construction materials, furniture and electronic devices, if housing prices were to largely fall.
Thus, the Chinese government is stepping up efforts to promote sustainable growth of the domestic real estate industry and is helping to create a long-term industry mechanism, said the spokesperson for the National Bureau of Statistics Mao Shengyong.
For their part, the authorities will start to take a number of measures, including the introduction of real estate taxes, and equal rights in the renting and sale of houses, said Mao.