China announces new real-estate stimulus package

WATCH VIDEO

Source: CCTV.com | 12-18-2008 08:32

The State Council has announced a new real-estate stimulus package that emphasizes low-income housing and home ownership. Premier Wen Jiabao presided over Wednesday's executive meeting of the Council which decided on the package.

The State Council has announced a new real-estate stimulus  package that emphasizes low-income housing and home  ownership.

The meeting discussed and adopted 3 sets of measures for achieving the goals targeting low-income housing and ownership.

Firstly, the government says the package will, in the next three years, address the difficulties of 7.5 million low-income urban families and 2.4 million households living in shantytowns. And rural homes in bad condition will also be renovated.

Secondly, residences may be sold free of business taxes after three years, rather than the current five years. And taxes will only be levied on the profit, not the sales price. The tax rate is 5 percent. To boost home buying, the government will also allow people who live in what are considered smaller-than-average apartments to buy a second apartment under favorable loan terms.

And finally, the government called for financial institutions to lend more for such purposes as mergers and acquisitions among property developers.

The meeting also called on local governments to adopt measures according to their own situation and to continue to enhance investigation and analysis of property markets. The meeting also called for an increase in the use of national subsidies and inspection of the quality of construction.

Editor:Zhang Ning