The cover reporter
Chongqing. Chart
This year, on new year's day, the city of chongqing urban and rural housing construction commission announced that the average price of new commercial housing in the central city of chongqing was twice as high as 29,616 yuan/m2. This also means that this year's chongqing home tax point is implemented according to this standard. This represents a 1. 98-fold increase over the 12-year period compared with the standard of $9941 per square metre implemented in 2011。
The real estate tax has risen by almost $20,000 in 12 years
Since january 2011, chongqing and shanghai have been among the first cities in the country to have a “two” tax on individual housing properties。
The original chongqing housing tax pilot policy was for purchasers of houses in the 9th district of the main city, such as single-commodity housing or high-end housing, to the extent that the average cost of building space in the 9th district of the main city was two times the average price of new commodity houses sold in the previous year. Thus, in 2011, the chongqing property tax collection site was $9941/m2。
Between 2022 and 2023, the average price of new commercial housing in the centre of chongqing was twice as high as 29616 yuan/m2。
“the chongqing housing tax was originally introduced to curb excessive growth in housing prices.” according to a well-known financial and economic commentator, during the excursion, special emphasis was placed on home buyers who had levied property taxes, who had purchased new homes or more in chongqing city without domicile, business or employment。
With the development of the housing market over the past decade or so, the chongqing tax collection site rose from $9941 per square metre to $1587 per square metre in 2020, an increase of 97 per cent over 10 years. From 2020 to this year, the number of entry points increased from 19587 to 29616 to 51 per cent over four years。
The market is low. Why is the increase in the tax points
From 2011 to 2017, chongqing's new commercial house sales increased from 4533. 5 million square metres to 6. 711 million square metres, the highest ever. Since then, affected by the restructuring of industrial policies and the weakening of demand for purchases, chongqing's sales of new commodity houses began to fall, and by 2022 this figure stood at 4,438,900 square metres, a decrease of 28. 4 per cent from the previous year and nearly 34 per cent from the highest level。
Chongqing housing tax rises on the poles. Phrases/mapping
What are the causes of the fall-and-up gap between the market and the rise in tax points? According to several senior industry figures, this phenomenon is due to changes in the structure of housing sales。
“in the period of hotness of the chongqing real estate market, more home buyers have chosen, from the point of view of value for money, to buy relatively low unit prices in areas far from the core, such as banan, the south coast and sum north, leading to more `low-priced' housing transactions across the whole real estate market, which have not contributed too much to the increase in average house prices.” wei xiao, who has been involved in real estate planning and promotion for many years, indicated that it is directly reflected at the property tax collection point, which can be seen from 2014 to 2016, at $13192 per square metre。
Over the three years, the total area sold for the construction of new commodity houses was more than 51 million square metres, especially in 2016, with an increase of 16. 3 per cent to 6,257. 15 million square metres。
In the four years since the outbreak, according to wei xiao, with the change in the economic situation, the concept of “homelessness” has deepened and, in addition to those who are absolutely new, the demand for real estate has been reduced by the attitude of most buyers towards real estate. “in the past, high-priced `school house' `subterrestrial house' was declining, and improved demand was increasing, leading to a decline in total market sales but higher unit prices, which also contributed to an increase in average house prices.”
In the chongqing building market in 2022, new sources of housing with prices above $20,000 per square metre were repeated. A project with a unit cost of $35,000 per square metre also emerged in the core area of the jiangbeijin bridge。
“the emergence of such home-based products, although they themselves may not have met the criteria for the payment of property taxes, has objectively pushed up the average price of new commodity houses in the city of chongqing building.” wei xiao's analysis indicates。
The rise in the property tax points or the improvement of the city's warmth
It is worth noting that on 20 september 2023, chongqing adjusted its property tax policy, focusing on the criteria for the subject of the levy. In the original policy, the term “first home and above for persons with no domicile, business or employment” was changed to “second home and above for persons with no domicile, business or employment”。
The average sale price is $35,000 per square metre, located on a building on the jhongqingjiang north bridge。
“the change from `first' to `second' reflects the authorities' attempts to `distie' the city.” the zhou expedition indicated that it had nothing to do with the general context in which a number of key cities in the country had, since last year, been boosted by the elimination of restrictions on the purchase of commercial housing。
With regard to the impact of rising housing tax points, it is widely recognized in industry that the rise in housing tax points amounts to an increase in the “ceiling” of the city of chongqing, which gives developers room for better product quality and will also facilitate high-quality real estate development and the return of the city to a warmer condition。
However, the more radical view was that the city of chongqing would be warmed up and that the “expanding of the housing tax pilot” should be pursued. According to the zhou expedition, the excess of property taxes relative to other cities (except shanghai) is not conducive to attracting high-end people to settle in, “they are not willing to bear the cost of holding property other than property”
According to data published by the chongqing city investment agency, in the first three quarters of 2023, there were 1491 new projects in operation throughout the city, with funds available in the amount of $37. 9 billion, and an official contract for new projects to solicit funds in the amount of $144. 5 billion. It is clear that projects, once officially landed, will bring in a certain number of high-end people。
To this end, as a member of the chongqing municipal council, the weekly expedition called on the authorities of chongqing to actively study and abolish the housing tax pilot at an early date as a “shock-off” in response to the lifting of the purchase restrictions in other cities in the country and “endowing the housing tax pilot can also contribute to the stabilization of the economy”
