Shanghai Pioneers Tax Incentives to Revive Property Sector

Shanghai has initiated tax incentives to jumpstart its property sector, including VAT exemptions for long-held properties and adjusted deed tax standards. These measures aim to bolster consumer confidence and address market slumps, with expectations that other major Chinese cities will implement similar incentives.

Shanghai has announced groundbreaking tax incentives aimed at revitalizing its property market, becoming the first major Chinese city to implement such measures amid concerns over economic growth.

The financial hub will exempt residents from VAT on selling properties owned for more than two years and has raised the levying standard for deed tax. Chinese policymakers are under pressure to stabilize a market that has significantly contributed to economic activity in the past.

With support from new property measures initiated in late September, experts anticipate other 'Tier One' cities will soon follow suit, as China's overall economy strives for sustainable recovery.

(With inputs from agencies.)