25/6/2018-8

Pass vacant tax to reach 5% of property or pass on buyers

The passing bank will collect a rateable value of 200% through a first-hand vacant tax, which is calculated at a current rental return of more than 2%, accounting for about 5% of the property price. Some scholars have said that there will be pressure on developers to price, or pass it on to buyers. And may delay the application of pre-sales and other methods to avoid tax.

Pricing pressure or delay in pre-sale

The first-hand vacant tax has been introduced as soon as possible. The news indicates that vacant units of one year or more will be charged through the existing rates mechanism. The rateable value will be 200%. Rentals for more than half a year will be exempted. Many scholars believe that the new measure will be waived. It may not be able to accelerate the developer’s promotion and achieve the goal of increasing supply.

According to Zong Tailiang, associate professor of the Department of Economics and Director of the Institute of Global Economics and Finance at the China University of Economics, the average rental return in the market is now over 2%. The estimated initial estimate of the rateable value of 200% is approximately equal to 4% to 5% of the property price. It will become a cost of holding goods, which will put pressure on developers to set prices. It does not rule out passing on some of the costs to buyers.

However, developers may postpone pushing time, delay the application for pre-sale papers, avoid the inclusion of items in the tax scope, and may even avoid taxation in the form of unit leasing or company assignment. It is estimated that measures may not be able to push developers to push.

According to Professor Mai Cuicai, associate professor of finance and policy department at Baptist University, the new measures will reduce the developer’s flexibility in pushing deployments. If the property market deteriorates in the future, there is an opportunity to force developers to reduce prices or reduce bulk cargoes, so as to reduce the tax burden. In the long run, The property market buried a “time bomb.”

On the development side, Liang Zhijian, chairman of the Real Estate Development Association executive committee, said that if developers were to slay this stock, it would affect the government’s revenue from land sales. If the supply can be increased, the terms will be fair, the industry will try its best to cooperate, but it is recommended that the project be satisfied with the project. It is only calculated two years later to ensure that developers have enough time to sell their buildings.