China Property Tax May Lead to 20% Decline in Housing Prices, Citic Says

The introduction of a property tax in China may cause housing prices to drop between 15 percent and 20 percent, according to Citic Securities.

The tax may affect economic growth by 0.48 percentage point to 0.64 percentage point by slowing down real-estate investment, analysts led by Zhu Jianfang wrote in a note today. The tax would bring 300 billion yuan of fiscal revenue for local governments, they said.

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