China wants to introduce a nationwide tax on property ownership, reports The Diplomat .
Real estate prices in major cities in China are among the highest in the world, and the real estate market has been a key driver of economic growth.
Buying real estate as an asset was seen by Chinese consumers as a safe and secure investment. Many middle and upper class Chinese are buying second and even third homes.
In this regard, the Chinese government put forward the idea of introducing a nationwide residential property tax a few years ago to cool the market, but this was not common across the country. While imposing a residential property tax could help cool the market, the plan is being rejected within the Chinese Communist Party itself.
Local real estate experts are reporting a possible introduction of real estate tax in the near future across the country, but there is no reliable information until the party announces this.
