THE conditions are not right for China to expand a property tax trial this year, Xinhua quoted the finance ministry as saying Wednesday.

The judgment was made after various aspects were taken into consideration, a Ministry of Finance official told Xinhua when answering questions regarding the real estate tax reform pilot program.

Overall demand remains sluggish in China’s property market, though a slew of measures have been put in place to revive buying interest.

New home prices stalled in February after edging up a month earlier, official data showed Wednesday.

The implementation of a property tax faces challenges, including macroeconomic pressures and downward pressure on the real estate market, said Yan Yuejin, research director of Shanghai-based E-house China Research and Development.

“This move is bound to reduce home buyers’ concerns,” said Yan, adding it was also favorable for real estate companies.

Vice Premier Liu He on Wednesday urged government bodies to roll out market-friendly policies and cautiously introduce measures that risk hurting markets. He also pledged to tackle risks in the property sector.

China will implement city-specific policies to promote the healthy development of the property sector, Premier Li Keqiang told the annual meeting of the National People’s Congress earlier in March.

In 2011, China launched a property tax pilot in Shanghai and Chongqing. In October, the top decision-making body of the National People’s Congress said it would roll out a pilot real estate tax in some regions, but did not identify the regions or give other details. (SD-Agencies)