China Implements Fiscal Measures to Stimulate the Real Estate Market
On Wednesday, China revealed a series of fiscal measures designed to invigorate the real estate market, including reductions in property taxes and value-added tax (VAT).
According to local media reports citing the Ministry of Finance, tax incentives for real estate transactions will be strengthened to actively address demand, particularly for essential housing needs.
The real estate sector represents approximately a quarter of the country’s gross domestic product and has experienced remarkable growth over the past two decades.
To achieve its economic growth target of 5% in 2024, China is focused on stabilizing this sector. In October, the government increased financing available for unfinished housing projects to over $500 billion.
In recent months, Beijing has also announced several measures to stimulate activity, including interest rate cuts and the relaxation of certain restrictions on property purchases.
