China has unveiled a stimulus package intended to boost its slumping real estate market.
It has slashed taxes for second-hand apartment sales to help owners selling their homes. This means that anyone who has owned a home for at least two years can now sell it without having to pay a tax on the total sales price, just on any profit made (which remains at five percent). The waiting period previously for a tax-free sale was at least five years.
The policy changes are an interim measure valid for one year, and are the latest in a series of moves made since the government announced a 4 trillion yuan ($586 billion) stimulus package in November intended to create jobs and spur economic growth through higher spending on construction and other projects.
Analysts expect the Chinese economy to expand by approximately nine percent this year, down from nearly 12 percent in 2007.