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Chinese experts say the country's new stimulus package for the ailing property sector is vital to sustain economic growth in the world's fourth-largest economy in 2009. Zheng Chenguang finds out more.
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Under the package unveiled Wednesday by the State Council, people with "smaller-than-average" apartments can now buy a second apartment under more favourable loan terms, with size limits set on a region-by-region basis.
Wang Yulin, a senior researcher with China's Ministry of Housing and Urban-rural Development, says the new move aims to revitalize the domestic demand and buoy economic growth.
"The policy issued by the state council is in line with the goal set in the central government's economic working conference and the agenda of the ten measures raised previously by the State Council to spur domestic demand."
The package also stipulates that someone who has owned their home for two or more years can now sell it without having to pay business taxes. Previously, owners had to wait at least five years before selling houses tax-free.
Wang Yulin says the policy will help ease the burden on first-time home buyers.
"The second policy includes preferential policies for mid-and-low priced as well medium-and-small sized apartments. The policy has a relatively wide coverage over homebuyers as many of them buy houses to live in."
Experts also pointed out that because the new regulations are only valid for one year, the effects aren't likely to be seen until the second half of 2009.
The moves are expected to work in concert with other measures to stabilize the real-estate market and help maintain a high level of broad economic growth.
Zheng Chenguang, CRI news.
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