Shenzhen new property policy rebuffs investors
Updated: 2007-07-25 17:39
If next buyer buys it for 17,000 yuan per square meter, he must pay as high as 2,200 yuan in income per square meter, which means he doesn't profit, and in fact has lost 1,000 yuan per square meter, including other charges.
Now, Wang is trying to transfer the apartment's ownership to someone else.
During these days, property right centers saw a long waiting line for transferring property rights.
"They hope to finish registering before the new tax rule comes out to avoid being evaluated," said Wu Fang, a seller in Futian branch of Chuanghui Rent and Selling Group.
As far as in 2004, there were calls suggesting the government collect income tax on evaluating prices, which made investors sell many properties once.
Huang Weilong, a second-hand transaction shop owner, said some investors became a little bit anxious during this last half month, and 20 percent of his clients began to lower prices.
Prices for a 118-square-meter apartment dropped to 2.30 million yuan from 2.35 million yuan, and the price of 106 square-meter houses dropped to 1.7 million yuan from 1.8 million yuan, said Wu Fang.
"Most of investors are playing short-term, and hope to get money back in few months, but now, the individual income tax is a big burden for them, and they began to worry about costs when owning property," said Pan Guodong, a supervisor responsible for Futian District from MyTopHome, a second-hand property group.
Investors began selling out properties in March, said a researcher surnamed Zhou. He said the market suffers great pressure when facing the land value-added tax, and the upcoming property tax.
"Investors may face greater risks now," said Zhou.
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