China's Tax Break Strategy: Boosting Property Market Amid Economic Drag

Beijing and Shanghai have introduced tax breaks aimed at reviving China's property market to stimulate economic growth. These actions, alongside other regulatory adjustments, aim to regain consumer confidence and stabilize the market. Analysts stress the need for further policies to address broader economic and income expectations.

In a bid to revive its flagging property market and bolster economic growth, Beijing and Shanghai have announced a series of tax breaks. These measures are intended to incentivize home purchases, as China's property sector continues to struggle, impacting the nation's overall economic momentum.

Under the new policies, sellers of properties held for more than two years in these cities will be exempt from value-added tax. The threshold for deed tax on properties has been increased, reflecting a strategic move to enhance market liquidity and consumer participation.

While the changes have provided a temporary boost to market confidence, experts believe that sustained policy efforts are essential to truly restore investor and consumer faith. Policymakers are urged to tackle the broader economic drivers influencing consumer expectations and stabilize housing price forecasts.

(With inputs from agencies.)