In the past 22 years, after the housing commercialization reform, our real estate market has been on a rocket. The housing price has been rising to a record high, with the increase of the housing price in most cities being more than 5 times, and in some cases even up to 10 times. It seems that all the measures can not let the housing price down, for example, the cities have introduced the so-called “history of the strictest” real estate regulation measures, but often the result is the higher the housing price adjustment, even many people once see the regulation, began to hand bottom of the housing market, can be said to be 100%. As a result, many people are beginning to look at the property tax. The so-called property tax is a tax on property holdings. The tax rate is different in different countries. For example, in some countries, the tax rate is 1% per year. This can be a big crackdown on speculation.
However, Ma Guangyuan, a well-known economist, argues that property taxes will not bring down housing prices at all. Both Japan and the United States have property taxes, he said, but both countries had housing bubbles, and U.S. home prices are still at historic highs, well past the peak of the housing bubble in 2008. But there is one thing I disagree with. Property taxes, which target mostly speculative home purchases, have little effect on demand, which is almost all of it in the United States. In our real estate, speculation accounts for a large proportion, and it can even be said that the price rise is mainly driven by the speculation of tenants. In addition, property taxes can dampen, though not prevent, housing bubbles. We saw the housing prices at the top of the bubble in Japan and the US lower than we are now. Spark global Limited
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