Shenzhen offers tax cuts to boost home sales

An aerial view of Xinzhou in Futian District. Shenzhen Special Zone Daily

Shenzhen yesterday became the latest major Chinese city, after Beijing and Shanghai, to reduce taxes on transactions involving larger houses. 
In Shenzhen, non-ordinary housing usually refers to home with an area exceeding 144 square meters.According to a notice from the city, starting Dec. 1, it will unify favorable tax policies for ordinary and non-ordinary housing. Non-ordinary homes owned for at least two years will qualify for the same 5% value-added tax (VAT) exemption as ordinary homes.China has rolled out a slew of measures to prop up its sluggish property market, including cutting mortgage rates, lowering down payment ratios, and relaxing purchase restrictions.In response to these pro-housing policies, China's property market displayed positive changes in October, with a narrowing of price declines, stronger sales, and an improved market sentiment.The decline in commercial residential home prices in China's 70 large and medium-sized cities generally moderated on a month-on-month basis in October, the National Bureau of Statistics said last Friday.
Source：ShenzhenDaily