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By Hu Yuanyuan (China Daily)
Updated: 2007-07-25 10:07

"As a tax levied on the ownership of property, it helps to reduce speculative investment into the real estate market," Liu said.

Though Li Wenjie, general manager of Centaline China (North China region), believed the inception of a property tax should be accelerated, he said he does not think the property tax will come out within the year

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"It involves the interests of so many people and its legislation is a very complicated process," Li said.

Li voiced his concerns on a property tax. "Should the tax only be imposed on the second or third apartments or also cover the first one? How about low-income families?"

As the supply and cost of land are also the catalysts for property price rises, experts are trying to lower the prices from these directions.

"We are wondering about other ways of reining in property prices," Zhu Zhongyi said. "For instance, the existing bidding mode could be applied only to high-end property projects, while common residential buildings could choose another way, thus reducing the land cost and make buildings more affordable for average residents."

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