Heavy tax to rein in housing speculation

Several long queues have formed in front of the service counters at the Real Estate Exchange Center, Minhang District, Shanghai on Mar 3.

According to China Daily, in order to hold back rising housing prices in major cities, the State Council, or China's cabinet, on Friday ordered that a 20 percent individual income tax be levied on capital gains by home sellers.

Many second-hand home negotiators are quite anxious to finalize their deals before the policy is put into effect. As a result, several Real Estate Exchange Centers in Shanghai have become crowded.

People queue in front of a Real Estate Exchange Center on March 3, 2013, in Minhang District, Shanghai. [Jing Wei/ Asianewsphoto]