As early as a few years ago, the relevant state departments put forward the proposal of levying property tax, but the property tax has not been implemented so far. Shanghai and Chongqing are pilot cities for levying property tax. I believe that with the experience of these two cities, the day of levying property tax nationwide is getting closer and closer to us.
Regarding the property tax collection, many friends are worried about the impact on housing prices, and different people have different views on the impact on housing prices.
Some friends think that after the property tax is levied, the house price in China will drop by at least 30%, because the ratio of house price to people's income in China is the highest in the world and the biggest real estate bubble. There is a lot of surplus real estate in China now, but real estate companies are still desperately building houses. There were many investors who invested in real estate in China before, which led to the rapid rise of house prices in China. Real estate speculation has made China's housing prices rise ten to twenty times in more than ten years.
If the property tax is levied at one time, then these real estate speculators with multiple properties will have to pay the property tax. In order to avoid high taxes and fees, many real estate speculators will start selling their properties. When the supply of real estate exceeds the market demand, the house price in China will plummet.
But in fact, after the property tax was piloted in Shanghai and Chongqing, the house prices in these two cities not only did not fall, but rose, which shows that their house prices have not been affected by the property tax. In this regard, some experts believe that the timing of introducing property tax is very important. If it is launched when house prices are rising, it may play a certain role in promoting house prices in a short time, but if it is under the current adjustment trend of the property market, it may accelerate the decline of house prices.
Regarding the trend of housing prices in China, we also need to look at the relevant policies issued by the state, which may be an important factor affecting housing prices.
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