In the latest move to promote the construction and
sale of small apartments in the booming real estate market China is
considering levying a tax on the building of big
According to Liu Zhifeng, vice minister of
construction, the ministries of construction and finance and the
State Administration of Taxation are jointly studying the
feasibility of levying a tax on owners of large homes including the
imposition of the long-disputed property tax.
"After the new tax is implemented people buying large
houses will also have to pay for their usage," Liu said over the
weekend in an address to an awards ceremony for small homes
He said the new tax was targeted at discouraging
people from buying big houses. "Just like in the auto market where
consumers capable of buying an expensive car may not be able to
afford the fees involved in maintaining that car some home buyers
might give up the idea of buying big houses when taking into
consideration the usage fees," Liu said.
In addition to the levy on big homes the country was
also planning to award designers of small homes, Liu
Normally design fees are charged in accordance with
the size of the house. Designing small houses is more complicated
and less profitable.
He said the country's current real estate market lacks
small-sized houses for buyers. "A house less than 90 square meters
should be the mainstream in the real estate market," Liu
He said increasing the supply of small and affordable
houses was the only way to solve the country's dilemma of a huge
population and insufficient land resources.
A survey by the ministry in April shows that the
average size of a house for sale in 40 medium-and-large-sized
cities is 113 square meters. In Beijing, it’s 143.9 square
(China Daily December 18,