The changes were part of measures to support the ailing real estate market, a pillar of China's economy which has been slowing from the impact of the global financial crisis.
'China has reduced the transaction taxes and fees significantly and there is now limited room for further cuts,' Qin Hong, deputy research head at the Ministry of Housing and Urban-Rural Development, told the official China Securities Journal.
Beijing has also repeatedly pledged to provide more affordable homes to accommodate its low-income population and plans to spend 900 billion yuan ($132 billion) in the next three years to build such homes.
Thursday, December 25, 2008
Monday, December 22, 2008
Real estate investment in Shenzhen hits RMB 38.98 bln
nvestment in the real estate sector in Shenzhen rose 1.71% year on year to RMB 38.98 billion during the first 11 months of this year, of which RMB 28.1 billion were invested in residential buildings, according to statistics released by the Shenzhen Municipal Bureau of Land Resources and Housing Management.
During the Jan.-Nov. period, 2.71 million sq m of commercial properties were built, decreasing by 14.63% compared with the same period of last year. Newly built residential buildings also went down by 12.16% to 1.99 million sq m.
Around 3.35 million sq m of commercial properties were sold during the period including 3.10 million sq m of residential buildings, down 37.45% and 35.55% respectively from a year ago.
In November alone, sales volume of newly built property in Shenzhen amounted to 590,000 sq m, representing an increment of 17.3% from the previous month. The total sales revenue increased to RMB 6.93 billion, up RMB 2.43 billion month-on-month.
During the Jan.-Nov. period, 2.71 million sq m of commercial properties were built, decreasing by 14.63% compared with the same period of last year. Newly built residential buildings also went down by 12.16% to 1.99 million sq m.
Around 3.35 million sq m of commercial properties were sold during the period including 3.10 million sq m of residential buildings, down 37.45% and 35.55% respectively from a year ago.
In November alone, sales volume of newly built property in Shenzhen amounted to 590,000 sq m, representing an increment of 17.3% from the previous month. The total sales revenue increased to RMB 6.93 billion, up RMB 2.43 billion month-on-month.
Thursday, December 18, 2008
China shares rise on moves to boost real estate
SHANGHAI, China (AP) — Chinese shares rose Thursday after the government announced tax cuts and other moves aimed at propping up the weakening housing sector. Renewed hopes for an interest rate cut also buoyed buying sentiment.
The benchmark Shanghai Composite Index opened lower but rebounded on gains in bank shares in the afternoon. It climbed 2 percent, or 38.87 points, to 2,015.69, and the smaller Shenzhen Composite Index edged up 1.7 percent to 617.3.
Investors were less impressed by political speechmaking marking the 30th anniversary of China's current era of economic reforms than by actual moves to boost the economy, analysts said.
"In general, investors are optimistic about the market as a series of government support measures have emerged one after another," said Xu Zhiyuan, an analyst for Capital Edge Investment & Management in Shanghai.
The benchmark Shanghai Composite Index opened lower but rebounded on gains in bank shares in the afternoon. It climbed 2 percent, or 38.87 points, to 2,015.69, and the smaller Shenzhen Composite Index edged up 1.7 percent to 617.3.
Investors were less impressed by political speechmaking marking the 30th anniversary of China's current era of economic reforms than by actual moves to boost the economy, analysts said.
"In general, investors are optimistic about the market as a series of government support measures have emerged one after another," said Xu Zhiyuan, an analyst for Capital Edge Investment & Management in Shanghai.
Sunday, December 14, 2008
The government is likely to cut the business and income tax levied on property transactions
Policy makers at the recently concluded Central Economic Work Conference (CEWC) have recommended the construction of more low-cost houses and reducing the tax burden for individual home purchases.
Property deed tax, business tax and income tax are major hurdles for new homebuyers and also in second-hand house deals, said Yang Shaofeng, Managing Director, Conworld, a Beijing-based property broker.
The taxes on buying a second-hand apartment could be around 7 percent or even near 10 percent if the apartment is larger than 140 sq m.
"The Ministry of Finance, State Administration of Taxation and the Ministry of Housing and Urban-Rural Development may reduce the taxes soon, in line with the central government decision in the CEWC," Yang said.
Property deed tax, business tax and income tax are major hurdles for new homebuyers and also in second-hand house deals, said Yang Shaofeng, Managing Director, Conworld, a Beijing-based property broker.
The taxes on buying a second-hand apartment could be around 7 percent or even near 10 percent if the apartment is larger than 140 sq m.
"The Ministry of Finance, State Administration of Taxation and the Ministry of Housing and Urban-Rural Development may reduce the taxes soon, in line with the central government decision in the CEWC," Yang said.
Wednesday, December 10, 2008
Xinyuan Real Estate Co., Ltd. to Participate in the New York Stock Exchange Virtual Investor Forum
Fast-growing residential real estate developer with a focus on strategically selected Tier II cities in China, today announced that it will participate in the New York Stock Exchange's ("NYSE") Global Virtual Investor Forum: Entrepreneurial Companies Behind China's Growth Story.
The Company's investor presentation will be accompanied by audio from Xinyuan's chief financial officer, Mr. Frank Ng, and is scheduled to stream on the NYSE's website beginning at 12 p.m. U.S. Eastern Standard Time today. Participants will be able to access the presentation on the virtual investor forum page of the NYSE's website at http://www.nyse.com/vif .
The Company's investor presentation will be accompanied by audio from Xinyuan's chief financial officer, Mr. Frank Ng, and is scheduled to stream on the NYSE's website beginning at 12 p.m. U.S. Eastern Standard Time today. Participants will be able to access the presentation on the virtual investor forum page of the NYSE's website at http://www.nyse.com/vif .
Sunday, December 7, 2008
China Property Slump Threatens Global Economy as Growth Slows
(Bloomberg) -- House prices in Shanghai, Shenzhen and Guangzhou are plunging, and the global economy may grind almost to a halt next year because of it.
Construction of homes, offices and factories fell at least 16.6 percent in October after rising 32.5 percent a year earlier, according to Macquarie Securities Ltd. That's squeezing an economy already slowed by recessions in the U.S., Japan and Europe that have cut demand for exports. Building is the biggest driver of China's expansion, contributing a quarter of fixed- asset investment and employing 77 million people.
The central bank cut its key interest rate by the most in 11 years last week and the government said “forceful” measures were needed to arrest a faster-than-expected economic decline. Without more rate cuts and government spending, China is unlikely to contribute the 60 percent of global growth Merrill Lynch & Co. forecasts for next year, further slowing the world economy.
Construction of homes, offices and factories fell at least 16.6 percent in October after rising 32.5 percent a year earlier, according to Macquarie Securities Ltd. That's squeezing an economy already slowed by recessions in the U.S., Japan and Europe that have cut demand for exports. Building is the biggest driver of China's expansion, contributing a quarter of fixed- asset investment and employing 77 million people.
The central bank cut its key interest rate by the most in 11 years last week and the government said “forceful” measures were needed to arrest a faster-than-expected economic decline. Without more rate cuts and government spending, China is unlikely to contribute the 60 percent of global growth Merrill Lynch & Co. forecasts for next year, further slowing the world economy.
Wednesday, December 3, 2008
China's cooling property market chills global economy
Construction is the biggest force behind China's economic growth, and the sector is contracting. Further decline in China's property market could undercut the global economy.
Construction of homes, offices and factories fell at least 16.6 percent in October after rising 32.5 percent a year earlier, according to Macquarie Securities Ltd. That's squeezing an economy already slowed by recessions in the U.S., Japan and Europe that have cut demand for exports. Building is the biggest driver of China's expansion, contributing a quarter of fixed- asset investment and employing 77 million people.
The central bank cut its key interest rate by the most in 11 years last week and the government said “forceful” measures were needed to arrest a faster-than-expected economic decline. Without more rate cuts and government spending, China is unlikely to contribute the 60 percent of global growth Merrill Lynch & Co. forecasts for next year, further slowing the world economy.
Construction of homes, offices and factories fell at least 16.6 percent in October after rising 32.5 percent a year earlier, according to Macquarie Securities Ltd. That's squeezing an economy already slowed by recessions in the U.S., Japan and Europe that have cut demand for exports. Building is the biggest driver of China's expansion, contributing a quarter of fixed- asset investment and employing 77 million people.
The central bank cut its key interest rate by the most in 11 years last week and the government said “forceful” measures were needed to arrest a faster-than-expected economic decline. Without more rate cuts and government spending, China is unlikely to contribute the 60 percent of global growth Merrill Lynch & Co. forecasts for next year, further slowing the world economy.
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