Buzz about expected property tax grips housing market; experts allay fears

For more than a decade, property tax has been regarded by speculative investors as a Pandora's box - once levied, it could lead to many unforeseen situations, pushing home prices this way or that. Or so they believed.

However, industry insiders said property tax is merely a policy to help preserve the sanctity and function of home as a dwelling unit and prevent housing from becoming a tool for out-and-out speculative investments.

In a bylined article published in People's Daily on Dec 20, Finance Minister Xiao Jie wrote about the need for a legislative process to introduce gradually a real estate tax, and also establish a thorough modern real estate taxation system later.