Shenzhen Offers Tax Breaks to Stimulate the Property Sector Like Beijing and Shanghai

Shenzhen Tax Breaks Emerge in Response to Market Slump

In a significant effort to rejuvenate the real estate market, Shenzhen has become the latest major city to implement tax breaks similar to those recently announced in Beijing and Shanghai. Starting December 1, homeowners in Shenzhen will no longer be required to pay value-added tax on the resale of properties they have owned for over two years.

Key Details of the New Tax Regulations

• Deed tax thresholds for larger homes raised from 90 to 140 square metres.
• Cities will no longer classify homes as ordinary or non-ordinary for income tax on resale.
• These measures are aimed at providing considerable savings for buyers.

Authorities have noted that these new regulations will prompt increased transactions, offering substantial financial relief to prospective homeowners targeting large properties. For instance, calculations suggest a homeowner could save approximately 900,000 yuan when reselling a home substantially appreciated in value, showcasing the regulations' economic impact.

Impact on China's Property Sector and Market Recovery

The recent actions in cities like Shenzhen, Beijing, and Shanghai come as part of broader stimulus policies aimed at revamping the struggling China Real Estate Information Corp reports.

The property sector has historically contributed greatly to China's economic growth, accounting for about a quarter of the total, yet it has faced challenges for four consecutive years. This recent push may indicate a responsive strategy to reverse declining prices and slow sales affected by home purchase restrictions.

Additional Measures and Upcoming Changes

• In Guangzhou, new residency measures have been proposed to facilitate homebuyers.
• Individuals fulfilling specific criteria in seven districts can apply for official residency.

These initiatives reflect a coordinated effort to bolster the property sector across major Chinese cities and support the nation's ongoing economic recovery.