Beijing: China has announced a series of tax measures to revitalize its struggling property sector, a critical component of its economy that has faced prolonged challenges. The policies, revealed on Wednesday, aim to address the country’s housing slump and bolster economic growth.

State broadcaster CCTV reported that the new measures, issued jointly by the Ministry of Finance, the State Tax Administration, and the Ministry of Housing and Urban-Rural Development, include enhanced deed tax incentives to support housing transactions, particularly for basic and improved housing needs.

Key Announcements
Deed Tax Incentives: Adjustments to lower transaction costs for homebuyers.
Land Value-Added Tax Relief: Reduction in the minimum prepayment rate to ease financial burdens on real estate companies.
Economic Context
The property sector, historically contributing about a quarter of China's GDP, has faced a years-long downturn, contributing to slower economic growth. The government has set a GDP growth target of around 5% for 2024, and reviving the property market is seen as critical to achieving this goal.

Previous Measures
China has already taken significant steps to address the sector's challenges:

Credit Support: In October, Beijing pledged over $500 billion to unfinished housing projects.
Policy Easing: Relaxation of home-buying restrictions and interest rate cuts to stimulate demand.
The latest tax incentives clarify and reinforce the government's commitment to stabilizing the property market and alleviating financial stress for both homebuyers and developers.