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在线翻译:
szdaily -> Business -> 
Policy toolkit saves home purchase costs, stabilizes market expectations
    2022-11-22  08:53    Shenzhen Daily

TAX reliefs, mortgage rate cuts and other measures rolled out in favor of China’s homebuyers are spurring demand and stabilizing property market expectations, analysts say.

China announced in late September that it would refund personal income taxes collected from any homeowner who is selling their current house to buy a new one.

The relief measure, which is in place from October to the end of next year, has tipped the scale in favor of relocating to new homes for many people. In southwestern China’s Chengdu, a resident surnamed Liu said the measure saved him almost 20,000 yuan (US$2,813) when he sold his old house.

While income tax varies proportionate to the price of each home, the measure can save eligible residents 30,000 to 50,000 yuan in most cities.

In addition to tax reliefs, China has allowed commercial banks to reduce the floor of interest rates on home loans by 20 basis points for first-home buyers, based on the tenor of the benchmark loan prime rate.

The loan interest rates of the housing provident funds for these buyers have also been cut, dropping 0.15 percentage points.

China has also granted leeway for eligible cities to maintain, slash or scrap lower limits for first-home mortgage rates until the end of this year. The lowest rates in more than 20 cities are down to below 4%, according to data from the China Index Academy.

The relief measures encourage city-specific policies and restore property market confidence, making it easier for localities to stabilize land prices, housing prices and market expectations, said Liu Hongyu, a professor at Tsinghua University.

Industry insiders say current first-home mortgage rates are in a historic trough, and housing costs are falling.

The new policies are gradually paying off, boosting home sales. The turnover of new homes in many cities rose more than 10% month on month in October in terms of area. (Xinhua)

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