Shanghai has become the first major Chinese city to roll out tax incentives aimed at boosting its property market, a move expected to set the tone for other Tier One cities like Beijing and Shenzhen.
These measures come as the property sector, once a cornerstone of China’s economy, struggles with falling prices and wavering buyer confidence.
Reuters announced that key changes include exempting residents from VAT when selling properties held for more than two years, and raising the deed tax threshold to properties larger than 140 square metres, up from 90.
For example, buyers of high-value apartments could see their deed tax bills drop significantly, from 300,000 yuan to as low as 100,000 yuan for a 10 million yuan property.
This move is part of a broader strategy to reignite property demand across China. Policymakers have already reduced down payment requirements and relaxed home purchase restrictions, but analysts warn these are short-term fixes.
To truly revive the market, they argue, there must be stronger economic growth, income stability, and sustained support for housing prices.
For real estate professionals, these shifts represent a moment of opportunity and adaptation as cities like Shanghai implement more buyer-friendly policies.
