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China Daily Website

Secondhand-house turnover in Beijing tumbles

Updated: 2013-05-06 20:00
By Zheng Yangpeng ( chinadaily.com.cn)

The turnover of secondhand houses in Beijing during the May Day holiday hit a multiyear low as potential homebuyers waited for clarification of the personal-gain tax.

The May 1 holiday period saw only 172 online deals, Beijing's housing authority said.

Zhang Xu, an analyst with Homelink, a house brokerage, said potential buyers are waiting for clarification of the income tax, and the previous buying spree has exhausted much demand.

China's latest property-control policies, which include a 20 percent tax on profits from homeowners' housing sales, have created a secondhand property purchasing spree as people rush to buy before the measures take effect. Though major cities have clearly stipulated a 20 percent gain tax on secondhand house deals, many smaller cities have not clearly included the stipulation in their local version of property control.

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