China Shelves Property Tax Plans to Focus on Stabilizing Real Estate Market

China shelves plans for a US-style property tax to focus on saving distressed developers like Evergrande and boosting economic growth. The tax was seen as a way to curb speculation and rising home prices.
With the property sector in crisis, the government is now trying to boost consumer confidence and demand. But some experts warn the market is transforming, with buyers expecting prices to fall rather than rise.
The economy is recovering slowly from the pandemic, but disposable income continues to decline. The property tax would have been a huge expenditure for buyers.
China's household debt, mostly from real estate, has ballooned to over 60% of GDP. This raises financial stability risks.
Real estate remains crucial to China's economy. But after years of construction, China now has a huge surplus of housing. Property investment has slowed sharply this year.

China shelves plans for a US-style property tax to focus on saving distressed developers like Evergrande and boosting economic growth. The tax was seen as a way to curb speculation and rising home prices.
With the property sector in crisis, the government is now trying to boost consumer confidence and demand. But some experts warn the market is transforming, with buyers expecting prices to fall rather than rise.
The economy is recovering slowly from the pandemic, but disposable income continues to decline. The property tax would have been a huge expenditure for buyers.
China's household debt, mostly from real estate, has ballooned to over 60% of GDP. This raises financial stability risks.
Real estate remains crucial to China's economy. But after years of construction, China now has a huge surplus of housing. Property investment has slowed sharply this year.