Poly Real Estate Group Co. led China’s property developers lower in Shanghai and Shenzhen trading, after a newspaper report said the country may start levying a property tax before March next year.
Poly, the nation’s second-largest publicly traded developer, dropped 2.9 percent in Shanghai as of 9:43 a.m. while China Merchants Property Development Co. fell 2.7 percent in Shenzhen. An index tracking 34 real-estate companies in Shanghai lost 0.6 percent, compared with a 0.2 percent decline in the benchmark Shanghai Composite Index.
The country may start levying the property tax on a trial basis prior to March, the China Securities Journal reported today, citing Nie Meisheng, president of the China Real Estate Chamber of Commerce. The government said last month it will speed up the introduction of a trial property tax in some cities and then expand the levy to the whole country.
Property prices in 70 cities rose 0.5 percent in September from the previous month and the value of real-estate sales surged 56 percent, prompting the government to extend a crackdown on speculators and multiple home purchases.
China may have more than 100,000 canceled new and existing home sales in the fourth quarter of the year because of the latest government curbs on the sector, the 21st Century Business Herald reported today, citing Centaline Property Agency Ltd.
China Vanke Co., the nation’s largest real estate developer, said late yesterday third-quarter net income rose 6 percent from a year earlier to 459.5 million yuan ($69 million) even as sales dropped 27 percent.
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