The Chinese government is expected to announce a "long-lasting housing mechanism" due in November at a key gathering of party members, according to media reports.
The Ministry of Housing and Urban-Rual Development has already finalized opinions ready to submit to the central policy-decision organ, the official said.
Property magnates were also included in the round of opinion-solicitation, according to the 21st Century Business Economic Herald. Ren Zhiqiang, chairman of Hua Yuan Real Estate Group, reportedly said big changes had been made several times before the final draft came out.
Despite the absence of official leak-out, Hu Jinghui, Vice President of BACIC-515 Property Agency, told AAstock that there was a basic market standing about where the polices would go. The "long-lasting mechanism" will mainly involve rural lands coming to market, legal moves in social security homes and the extension of a property tax, among others, Hu said.
A second source close to the MHURD said that new property moves would be related to policies in direct property financing, land supply system, and the construction of social security houses.
The extension of the property tax, which has been enacted only in Shanghai and Chongqing so far, is expected to be at the center of policy discussions, the report said.
Chances are "very big" for the expansion of the tax, said Zhao Luxing, a director of the policy research center of the MUHRD, said in an earlier interview with AASTOCKS.
According to Hu, the property will be extended in both "width and depth". The expansion of the tax to more cities seems inevitable, he said; but the possibility of a "dilatation" of the tax is great.
Hu expected that the current rise of housing prices could be somehow curbed under the new mechanism. The government may also change its perception in housing controls, like a shift from dampening demand to increasing housing supplies, he added.
China has put in places many measures to control the sizzling sector in recent years, but they don't seem to have delivered much effect. Chinese home prices rose for the 16th consecutive month in September, with a monthly increase of 1.07 percent in 100 cities, according to data from the China Index of Academy. In the same month,land salEs in ten of China's major cities hit a 33-month high, statistics from real estate company E-House showed.
Source: Caijing
