"the solution is to make property circulate" ... This would be good for RE broker transaction volume in the future
The new measures have been described as heavy-handed by many, but others believe they will actually cause prices to go up further, as property sellers may include the new tax in their prices.
Pan Shiyi, a leading real estate developer, said the problem lies in the concentration of large amounts of property in the hands of few people. Some people have many properties, while others have none, he said, adding that the solution is to make property circulate.
Economist Lang Xianping said controlling inflation is the key to maintaining stable prices, adding that taxation is not correlated to housing prices.
Lang said the increasing housing prices should be seen as a symptom of a sick economy. The central government has tried to regulate the market since 2003, but prices have continued to rise.
The detailed measures being implemented in China's provinces and cities are still being compared and measured. However, it is not yet known precisely how they will impact the market, leaving many to continue wondering which move they should make.