Stricter measures to cool property market

BEIJING - Amid expectations of rising housing prices, China's central government on Friday rolled out specific rules to further tighten control of the property market.

The government said in an online notice that homeowners who sell their homes will be levied an income tax as high as 20 percent of the profit they make on the transaction.

Prior to the new rules, income tax was 1 percent to 2 percent of the sale price.

The notice said local branches of the central bank in cities with soaring home prices can increase the down payment rate and mortgage loan interest rate for home buyers purchasing a second unit.

Non-local families with one home or more, as well as non-local families without a certain amount of years of tax payment certificates or social security payment certificates, will be banned from buying homes in the cities in which they currently reside.

The notice also said local governments will be held accountable for curbing soaring home prices, and asked them to make specific schedules.

The central government said it will step up inspections of provincial-level governments' property market control work. Those who fail to meet their targets will be penalized.

The country's major cities, excluding Lhasa, have been asked to set annual price easing targets for newly-built homes and reveal these targets in the first quarter of the year.

The notice said China will work to increase land supplies for housing, and the total amount of such land nationwide in 2013 should be greater than, or equal to, the annual average over the last five years.

Cities and counties are required to make information on land supplies available to the public and reveal annual land supply plans before the end of March.

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