Home > China, Microeconomics, Tax Policy > What does a China property tax mean for students?

What does a China property tax mean for students?

Real estate in China is a hot topic, but I’d like to ask my students to consider a couple of narrow questions this article raises:

A combination of tax and regulatory measures is being used, and measures vary from city to city. For example, the national capital, Beijing, rolled out more purchasing restrictions in March. The city now restricts single-person households from purchasing more than one residential property. Guangzhou, in the southern province of Guangdong, is limiting growth in the prices of new properties to below the growth rate for average disposable income.

1) How do you think Guangzhou is “limiting growth in the prices of new properties to below the growth rate for average disposable income”? The article doesn’t say. What ways could the government use to accomplish this goal?

2) If the government previously did not tax property, and now starts to tax it, what unexpected or unintended effect might this have on the supply of rental apartments? What effect on rental prices?

Bonus points to students in my classes who can assess this well!

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