Beijing version of 20% tax New Deal frozen second-hand housing market

Beijing version of 20% tax New Deal frozen the second-hand housing market diesel generator | diesel generator price / 2013-05-07

Beijing version of 20% tax New Deal frozen second-hand housing market

Tax burden passed on to buyer and “Yin and Yang contract” disruption policy effect

After going through the madness in March, the second-hand housing market in Beijing has been frozen since April due to the collection of 20% tax.
The China Securities Journal reporter learned from the field survey that although the Beijing Municipal Local Taxation Bureau issued regulations concerning the collection of 20% of the individual taxes, from the case of some intermediary transactions, various districts and counties had cases with different collection standards. How much tax to pay, buyers and sellers have no end in mind, the willingness to trade sharply decline. In order to reduce the tax burden, "yin and yang contracts" between buyers and sellers are prevalent; and from some transaction cases, 90% of home sellers pass a tax on home buyers.
Tax burden passed to buyer
Judging from the case studies of some stores in all districts and counties of Chain Home Real Estate, there have been cases where different types of housing tax have been collected for the same type of housing, resulting in confusion between buyers and sellers. In particular, some commercial houses that have not passed the network of residential construction committees and the owners of purchased public housing and affordable housing have no way of knowing how much tax they have to pay. This directly leads to a sharp decline in market willingness to deal.
According to the data from the Beijing Housing and Construction Commission, in April, Beijing's second-hand housing network accounted for only 5212 sets, down 88.1% from the previous month. In the first week of the new May, the number of second-hand residential network signings was 517, a decrease of 78.6% from the previous quarter, only one-third of the same period last year. Moreover, more than 70% of the transactions in the second-hand housing market are now the only houses in the five-year period.
“In March, each agent in our shop sold two or three houses per week, but in April, we sold five out of four people in one month, and three sets. They are the only tax-free rooms for five years.” Zhang Jianxin (a pseudonym), a chain real estate store broker located near the Jiuxian Bridge in Chaoyang District, Beijing, laments the impact of a tax policy on the market.
In terms of prices, according to the statistics of the Chain Home Real Estate Market Research Department, the average price of second-hand housing in Beijing in April was 27,820 yuan per square meter, which was the same as in March. However, in the first week of May, the average price of second-hand residential transactions was 26,554 yuan per square meter, up 1% from the previous week. “The price of the only duty-free house in five years has increased by at least 10% from March, but it is still tight, and customers are rushing to buy it. In a house with tax, 90% of the owners pass the tax on to the buyers, and the price No matter how you lower it, at most it is a little tax.” Zhang Jianxin said that although there is a tax house that is not easy to sell at present, “whoever buys a house who pays taxes” is still the mainstream of the market.
In order to increase the trading volume and help sellers reduce their tax payments, the intermediary began to encourage sellers to do "yin and yang contracts." Many brokers in the chain's stores told the reporter that many sellers are worried that 20% of the taxes will be excessive and they are very willing to do "yin and yang contracts." According to Zhang Jianxin, Beijing has a low guide price for second-hand housing transactions, and the intermediary can help customers report a tax at a low price. “The house between the Third Ring and the Fourth Ring has a low transaction price of about 18,000 yuan per square meter, and between the fourth ring and the fifth ring of about 16,000 yuan per square meter. When we help clients to transfer, they can trade at a low price. Such a tax is much less. For example, the 80 square meter house near Jiuxianqiao has a market quotation of about 2 million yuan, but it has made a transaction price of 16,000 yuan/square meter, and the total price is only 1.28 million yuan.” Zhang Jianxin disclosed.
Wait and see into the mainstream mood
"If you really implement it at 20%, my house will not be sold, and you can't rent it first." Mr. Jia, who owns 3 suites, is indignant about a tax policy. For more than a month, more and more people like Mr. Jia have been.
The person in charge of Hyde Real Estate Company stated that Beijing is the only city in the “State Five” Executive Rules that strictly enforces 20% tax, and the affordability of Beijing home buyers is approaching the limit, which also leads to the mainstream sentiment of the current secondary market. The company manager of an intermediary company outside Beijing’s Second Ring Road told reporters that she believes that the policy effect lasts for two or three months. She wants to buy a house and wait for it.
“A tax policy has caused the market volume to continue to shrink, and the overall difficulty of the market is also rising, which is not conducive to ease the contradiction between supply and demand and stabilize housing prices.” said Zhang Xu, a real estate market researcher at the chain. According to industry analysts, Beijing's second-hand housing market will likely last for half a year.
Moreover, in accordance with the provisions of the “Notice” issued by the Beijing Municipal Local Taxation Bureau, the taxation departments of all districts and counties must increase their manpower and material resources to verify the purchase contracts, decoration funds, loan interest, and various types of housing of various types of houses one by one. Expenses and so on. The willingness of the taxation departments of various districts and counties to increase costs is not strong.
It is worth noting that the implementation of 20% tax and stable house prices are not necessarily linked. According to media reports, Dongguan, Guangdong has implemented the tax policy since 2007, but five years later, the volume and price of second-hand housing in Dongguan have shown an upward trend. According to data provided by Dongguan Zhongyuan Real Estate, the average housing price in 2007 was 2,202 yuan per square meter. By 2012, the average price had reached 3,542 yuan per square meter, and the cumulative increase was over 60%. In 2012, the number of second-hand housing transactions in Dongguan was 35,507 units, an increase of 153% compared with 14,058 units in 2007.
Next post: The gold QDII gains frustrated experts say the gold price outlook is not optimistic
Previous post: A small number of Hong Kong people boycotted donations for Sichuan The Hong Kong government wants to donate 100 million hard labor

Our company is located in Shenyang, which is the national heavy industry base of China and the political, economic and cultural center in the Northeast of China. Our factory covers an area of 28000 square meters, among which our foundry workshop covers 5200 square meters and our machine processing workshop covers 4600 square meters. In 2002, we got the certificate of ISO9001. We are a manufacturer specialized in all kinds of copper bushings, crusher parts, big centrifugal bushes, worm wheels, nuts and so on. With a wide range, good quality, reasonable prices and stylish designs, our products are extensively used in Mining and Quarry (Crushers and ball mills), Hydroelectricity (Hydro Equipment), Cement Equipment (Rotary Kilns and Lime Kilns), Forged and Steel Rolling (Nuts, Screws and bushings), and other industries. We always supply bushings and other parts of cone crushers and imported crushers (Metso, Sandvik, Nordberg, Svedala, etc.)


 for Metallurgical Mines, Non-ferrous Mines and Ore Mines. We also supply copper bearing bushes, Labyrinth Sealing Rings and copper upper-retaining rings for GE Hydro, Andritz Hydro, Alstom Hydro, Vioth Hydro and Rainpower Hydro. Our products are widely recognized and trusted by users and can meet continuously changing economic and social needs. We welcome new and old customers from all walks of life to contact us for future business relationships and mutual success!


YYD Casting

Cone Crusher Parts

Cone Crusher Parts,High Lead Bushing,Bronze Spare Parts,Casting Bushing

Shenyang YYD Casting Co,. Ltd. ,