She said: "As the seller's stamp duty holding period is extended, the number of units for sale in the resale market is expected to decrease. This will help avoid oversupply when more apartments obtain temporary entries in the coming quarters, thereby maintaining supply and demand balance and price stability in the private housing market."
He expects that after the implementation of the policy, the volume of private home transactions this year will drop from the initial estimate of 20,000 to 21,000 units to 19,500 to 20,500 units.
The government will increase the seller stamp duty rate for residential properties and extend the minimum holding period from three to four years. This move may be to cope with the continued upward trend of sub-sale transactions in the past few quarters.
Starting from Friday (4th), the holding period of the seller's stamp duty will be extended from three years to four years, and will return to the years before the previous round of adjustments in 2017. The seller's stamp duty rate for each level of the holding period will be raised by four percentage points.
Thegovernment announced late at night on Thursday (July 3) that it would adjust the seller's stamp duty (SSD) and holding period for residential real estate to curb speculation. Real estate analysts generally believe that this is a moderate regulatory measure and may not have a big impact on the market.
He said: "This is just a moderate regulation, and if the government wants to implement more adverse measures, it may increase buyer stamp duty or additional buyer stamp duty (ABSD) for citizens and permanent residents to buy private homes for the first time."
Sun Yanqing, chief research and strategy director of Realion, pointed out that although the current resale transaction volume is higher than the pre-epidemic level, the transaction volume in the past few quarters has shown a downward trend. In addition, after multiple increases in the additional buyer stamp duty (ABSD), most apartment buyers are self-occupied, and she believes that such buyers will not be affected by the seller stamp duty increase because they tend to hold property for a long time.
ERA Industry President Zhu Yongqiang also believes that this measure is moderate for the overall market, rather than a strong suppression, and the purpose is to stabilize price fluctuations caused by short-term holding investors. “Even without this adjustment, high interest rates and rising property taxes have eroded profits, and many investors are more inclined to hold property for more than three years.”
Mao Junrong, chief researcher of the tycoon real estate website, told Lianhe Zaobao that since more new private homes are expected to be launched in the second half of this year, the government needs to take the initiative to prevent further increase in resale transaction volume.