SHANGHAI/BEIJING (Reuters) - China is set to further clamp on the housing market floating the country imposing a tax of property of long controversial for the first time in the southwest of Chongqing City, national media reported Monday.
Chongqing won "in principle" approval of the Ministry of finance and can introduce property tax as soon as this quarter, City Government cited China Securities Journal says.
Analysts expect the tax of approximately 1%, said the newspaper.
China has debated for many years to have a tax but retained fears, could seriously affect the market.
National media, recent months suggest, however, that the Chinese Government is finally warming to the idea and could impose a property tax on an experimental basis in several cities including Chongqing, Shanghai, Beijing and Shenzhen.
The China Business News has declared Monday as Chongqing likely to tax only the high range, unlike Shanghai, properties which reportedly will tax only certain secondary residences.
China has taken a series of measures to cool its market of property inflamed since late 2009 in efforts to combat speculation "hot money" flowing into the country.
Despite the measures, the housing prices in major cities in China soared by more than one-fifth of last year.
Analysts welcomed the tax as a means to prevent the market.
"Conditions are now good start of a land tax collection and China should start as soon as possible," the China Securities Journal cited the State Information Center, a Government think tank, said.
The China home prices forecast Centre can facilitate this year and predicted that the Government will be jack down payment requirements and mortgage rates if rebound real estate prices.
Official daily, the spokesman of the Communist Party, people said the same way.
"Overall, property policies in 2011 will remain tight,", said the paper. "If economic conditions improve, property policies could even shake."
Stressing the buoyancy of the real estate market, the Centre of Information predicts state real estate investment will grow more than 20% this year, driven by robust demand and large profit margins in the industry.
Real estate investment jumped nearly 37% in the first 11 months of 2010 for one year.
(Statement by Lu Jianxin, Langi Chiang and Kazunori Takada;) (Koh Gui Qing and Ken wills Edition)
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