A Chinese industry expert on Monday said that to levy real estate tax at the moment will possibly cause large economic turbulence in the domestic market.?
As such, housing management authorities are expected to build a long-term mechanism for the country's property sector.
Tong Yuezhong, honorary vice president of the China Real Estate Association, told a forum in Beijing that restrictions on home purchasing, loans, prices and sales in China actually send a signal to Chinese people - that home prices will rise in the future, according to a report released by domestic news site finance.sina.com.cn on Monday.
"[Home price rises] need to be pressed hard as it is just like a springboard. If it is released a little bit, it will rebound," Tong was quoted as saying in the report, adding that restrictions give people expectations that housing prices will continue to rise.
The expert noted that the Chinese government is expected to set up a long-term system for the domestic real estate industry.
To suddenly start levying real estate tax, which is likely to be at a relatively high level, will possibly have a subversive impact on the property sector, Tong said.
If the policy is to be released shortly, it would cause economic turbulence in China, he said, adding that many sectors, including steel, cement, construction materials, furniture and electronic appliance, would be affected if home prices were to largely fall.
As such, the Chinese government is stepping up efforts to advance the stable growth of the domestic property industry and promote the construction of a long-term industry mechanism, Mao Shengyong, spokesperson of the National Bureau of Statistics, told a press conference on Monday.
Authorities will start from the supply side to put forward a series of policies including real estate tax and offering equal rights when renting and selling homes, Mao said.
