(Yicai Global) Oct. 11 -- Over 20 first-tier and major second-tier cities rolled out policies tightening the property market during China's National Day holiday. However, a government expert believes more systemic regulation is required to have any lasting effect.
"Current regulations only deal with symptoms rather than root causes, while institutional frameworks including property tax system, housing system and land system are required to wipe out problems in the future". Mr. Jia Kang, former director of China's Ministry of Finance research institute for fiscal science said in an interview with Yical Global.
"The red-hot property market has led to pain and anxiety in Chinese society, making it necessary to accelerate property tax legislation and reform. During the process, the tax on property rejected by the masses must come into force. Looking around, all the modern economies have implemented real estate ownership tax. Implementation is only a matter of time in China," said Mr. Jia.
"Due to various factors, property tax is yet to be imposed in China. The relatively low cost of possessing a house in China in part encourages some well-heeled individuals to hoard several properties, not only disturbing market demand, but also widening the gap between the rich and the poor." he added.