What will be the impact of the implementation of mainland China's real estate tax policy?

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The Politicus
Oct 27, 2021 05:18 AM 0 Answers
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Recently, the National People's Congress issued relevant documents on the five-year trial method for real estate tax. The Mainland China will officially implement the real estate tax collection method within five years.

Affected by the comprehensive impact of local government real estate price restrictions and centralized land auctions, real estate companies across the country have encountered varying degrees of capital turnover difficulties.

Some mainland real estate companies, such as Evergrande, have faced risks such as difficulties in bond redemption, which has caused anxiety for creditors holding Chinese real estate companies’ debt in US dollars and yen in the international market.

So far, mainland China has not completed the networking of real estate information systems in various provinces. If real estate taxes start to be collected, the asynchrony of information will help those who hold multiple properties to avoid tax and tax evasion.

In what form will mainland China's real estate tax policy be implemented?

At the corporate level, will this increase the strain on the capital chain of mainland real estate companies and increase the difficulty of redemption of international bonds for mainland real estate companies?

For ordinary people, if the middle class with multiple properties sells numerous houses, will it trigger a fall in real estate prices, leading to a mortgage break and an economic crisis?

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  • October 27, 2021