New tightening polices spur transactions

Agencies report rapid sales in used property market, as buyers rush to avoid new 20 percent income tax

The latest tightening policies issued by the State Council on Friday, which include levying a 20 percent income tax on pre-owned home sales, are spurring property transactions on the secondary market in some first-tier cities.

In a property exchange center in Shanghai's Pudong New Area, both the first and second floors were packed with homebuyers and property agents on Monday. People waited in long lines to complete their transactions as soon as possible to avoid the heavy tax.