The State Council, or Cabinet, on Wednesday announced a new real-estate stimulus package that emphasizes low-income housing and home ownership.

The package was decided on at an executive meeting of the Council, presided over by Premier Wen Jiabao.

The government said the package would address the difficulties of 7.5 million low-income urban families and 2.4 million households living in shantytowns in the next three years. Rural homes in dangerous condition will also be renovated.

Residences may be sold free of business taxes after just three years, rather than five, and taxes will only be levied on the profit, not the sales price. The tax rate is 5 percent.

To boost home buying, the government will also allow people with what are considered smaller-than-average apartments to buy a second apartment under favorable loan terms.

The government called for financial institutions to lend more for such purposes as mergers and acquisitions among property developers.

(Xinhua News Agency December 17, 2008)