Property Tax Is Not Necessarily The "Killer" Of High Housing Prices.

After 7 years of idling, Property tax "Boots" landed. The benefits of levying real estate tax are obvious: providing local governments with income sources; increasing the cost of holding property and restraining the cost. speculate in real estate and Speculation Adjust income distribution. Property tax is a tax to regulate housing demand, and it is also a "wealth adjustment".

It is necessary to improve the property tax. For example, property tax is a link tax. How can we prevent it from becoming a trading tax? Another example is whether the tax rate system with lower starting point tax rate is progressive or fixed. Again, which institution will assess the value of real estate at the market price or the valuation price?

Property tax will change the trend of rising housing prices, and how much the property tax system has on the market is uncertain. The impact of property tax on property prices is a gradual process.

For self occupied housing, property tax will increase rent and stimulate demand for housing. But for speculative buyers, they will be affected by the increase in the latter's cost of ownership. For rental investment type buyers, the Levy of property tax will shift the cost to the lessee.

But property tax may not be the "killer" of housing prices. The key is to pay attention to the use of property tax, and to build property tax into affordable housing, rather than administrative expenses. Housing prices are mainly affected by supply and demand, so the long-term impact of property tax on housing prices is limited, and will not have a dominant impact on the whole market, but in the short term, it will play a regulatory role in the structure and price of residential products.

The next question is, what will be the trend of housing prices in 2011?

Under the background of abundant liquidity, the real estate market also has upward momentum. From the perspective of liquidity, the influx of international capital and the increase of domestic money volume may aggravate the rise of housing prices; from the supply and demand situation of the real estate market, the demand space is larger.

Although the impact of Shanghai and Chongqing property tax pilot on the market is limited, under the "Eight Control Regulations on House Prices", the policy of regulation and control is unprecedented and broader, including the purchase order and other policies, which also need local governments to implement. The intensification of regulation and control has made the funds of small and medium-sized enterprises tight and the source of funds increased year by year. Due to strict pre supervision and strict land value added tax, the increase of interest rates will increase the financial cost and capital pressure of developers.

Therefore, this year there may be a high level of price fluctuations. This year, prices will not rise sharply, and will not maintain rapid growth in the past few years. Of course, the possibility of a crash will not exist. However, the area of commercial housing sales will decline this year.

Why do we need to build affordable housing? It helps improve the living conditions of low-income urban residents and achieve the goal of "living and living". But the construction of affordable housing system is still not perfect. In 2010, 5 million 900 thousand types of affordable housing were set up, and 3 million 700 thousand units were basically completed. Last year, some areas did not do well. The implementation of affordable housing land policy was biased.

How will it be in the future? This year, the construction of indemnificatory housing has a "blowout" trend.

The Ministry of housing and urban construction has announced that nearly 10 million sets of affordable housing will be broken out this year, which will exceed 1 trillion and 300 billion. Compared with last year's 5 million 900 thousand set of growth of 20%; during the "12th Five-Year" period, the Ministry of land and resources ensured that affordable housing, shanty towns and self occupied small and medium-sized commercial housing land were not less than 20% of the total supply of housing construction land. The Ministry of finance has said that it is necessary to ensure that financial investment is invested, which requires no less than 10% or even 20% of the proceeds from the transfer fees to be used for the construction of affordable housing.

Therefore, we should wait and see how to carry out the whole process inspection from land approval, collection, transfer, development and utilization, and mortgage financing, and how to ensure the implementation and implementation of affordable housing projects.