Home sales have risen in Beijing due to fears that a real estate tax will be introduced.
Government statistics showed that nearly 2,093 homes were snapped up last Thursday, up 86 percent from the previous day.
The rush to buy flats follows the state council’s implementation of additional cooling measures, including a property tax which came into effect in Shanghai and Chongqing on Friday.
The capital is believed to be next in line, with tax details likely to be announced this year.
People in other mainland cities will likely snap up homes before they are also affected, said Francis Cheung Yiu-cheong, CLSA Managing Director of China-Hong Kong strategy.
The tax imposed on second homes in Chongqing and Shanghai targets speculators. If the price of a second home in Shanghai is less than double the average, the tax rate is 0.4 percent; otherwise, buyers have to pay 0.6 percent on 70 percent of the transaction price. Non-permanent residents will need to pay a tax for new homes but will be refunded after they have worked in the city for three years.
Mr. Cheung, however, expects that prices will remain flat due to the measures. He also expects further government initiatives in April and May.