Think tank calls for new housing market support

Rising inventory of unsold units putting damper on investment

A top Chinese think tank said that homeowners should be allowed to use their mortgage interest payments to lower their tax liability, and that costs associated with buying a home be slashed to support the market.

The report, released on Thursday by the National Academy of Economic Strategy under the Chinese Academy of Social Sciences, echoed recent calls for using mortgage interest as an individual income deduction for tax purposes to encourage home purchases.