China Aims to Reignite Property Market with Major Tax Cuts on Home Buying

In an attempt to revive its struggling real estate market, China is preparing to implement significant tax reductions on home purchases, particularly in major cities like Beijing and Shanghai. The proposed changes could cut deed taxes on property transactions from as high as 3% down to as low as 1%, aiming to make home buying more attractive and stimulate the housing sector, which has been facing a downturn due to falling prices and cautious.

The latest measures align with broader fiscal strategies, such as lowered mortgage interest rates and a reduction in the required down payment ratio for second homes, now matched to the first-home requirement at 15%. The hope is to revitalize buyer confidence and relieve debt-heavy real estate developers by stabilizing property demand​.

However, analysts caution that these moves may be “too late and too little,” as housing values in many areas have already plummeted, leaving potential buyers wary. This initiative reflects China’s ongoing struggle to balance rapid urbanization and economic stability.