Middle finger Institute: The consecutive implementation of fiscal policies is expected to further strengthen the market's pace of recovery, helping the real estate market to stop falling and stabilize.

The China Index Research Institute stated that the multiple tax optimization policies recently announced by three ministries continue to release policy benefits, and the financial and tax support for the real estate market is accelerating. This policy will bring substantial benefits to home buyers and real estate developers, reducing the cost of home purchases for buyers and easing the financial pressure on developers. It is conducive to further stabilizing market expectations and boosting the confidence of home buyers. In October, the real estate market showed a "phase of stabilization", and with the continuous implementation of financial and tax policies, the market is expected to further strengthen its recovery pace, helping the real estate market to stabilize after a decline. On November 13, the Ministry of Finance, the State Taxation Administration, and the Ministry of Housing and Urban-Rural Development issued the "Notice on Promoting the Stable and Healthy Development of the Real Estate Market Related Tax Policies," and the State Taxation Administration issued the "Announcement on Lowering the Lower Limit of the Prepaid Land Value-added Tax Rate," effective from December 1, 2024. The main contents are as follows: 1. Regarding the deed tax policy for housing transactions: - For individuals purchasing a family's only residence with an area of 140 square meters or less, a deed tax of 1% will be levied; for residences with an area of more than 140 square meters, a deed tax of 1.5% will be levied. - For individuals purchasing a second home for the family, with an area of 140 square meters or less, a deed tax of 1% will be levied; for residences with an area of more than 140 square meters, a deed tax of 2% will be levied. 2. Regarding the land value-added tax and value-added tax policies after the cancellation of standard residential and non-residential housing in related cities: - In cities that have canceled the standard for residential and non-residential housing, taxpayers who construct standard residential housing for sale, with the increase in value not exceeding 20% of the project deduction, will continue to be exempt from the land value-added tax. - In Beijing, Shanghai, Guangzhou, and Shenzhen, if standard residential and non-residential housing standards are cancelled, individuals in these cities who sell housing to the public after owning it for 2 years or more are exempt from the value-added tax. 3. Lowering the lower limit of the prepaid land value-added tax rate: The lower limit of the prepaid land value-added tax rate will be reduced by 0.5 percentage points. After the adjustment, except for affordable housing, the lower limit of the provinces in the eastern region will be 1.5%, in the central and northeastern regions 1%, and in the western region 0.5% (the division of regions is in accordance with relevant State Council documents). This round of tax optimization policies released by the three ministries continues to release policy benefits, and the financial and tax support for the real estate market is accelerating. This policy will bring substantial benefits to home buyers and real estate developers, reducing the cost of home purchases for buyers and easing the financial pressure on developers. It is conducive to further stabilizing market expectations and boosting the confidence of home buyers. In October, the real estate market showed a "phase of stabilization", and with the continuous implementation of financial and tax policies, the market is expected to further strengthen its recovery pace, helping the real estate market to stabilize after a decline.