In the current market, small-sized houses are the first choice for those investors who want to take small risks to gain large turnovers. Statistics show that this kind of speculative home buying makes up 26.7 percent of all house sales in Beijing.
Under such circumstances, some experts suggest that local governments levy real estate taxes on extra houses that speculators buy. They explain how in the long run real estate tax is inevitable, although if it is put into practice, it may produce some negative outcomes such as lifting the housing prices while dealing a big blow to those speculators.
For more details, please read the full story in Chinese. (
http://jjckb.xinhuanet.com/yw/2007-07/13/content_57730.htm)
(China.org.cn July 13 2007)
