房产税袭来 能否遏制房价?

Despite the faster than expected rise in prices through January, the sentiment of the home buyers doesn't seem to have been deterred at all.

In fact, Shanghai is reporting new home sales have risen to some 165 thousand square meters just over the last week.

The average price, meanwhile, is said to have climbed 3.9 percent - reaching nearly 23,300 yuan per square meter.

Huang Yu, who's the Executive Vice President of China Index Academy, actually says the price rise won't continue for long.

"The housing prices will start to decline in the second half of this year. It won't stay at the current growth rate and keep going up as everyone feared. There's no possibility for the housing prices to peak over the latter half, but uncertainties still remain."

However, others such as Cheng Haoye - research manager at a leading housing agency, says the government's grip on the matter won't loosen anytime soon.

"The central government has set the tone for policy adjustment this year. More strict control measures are expected and the frequency will be at a new level."

Gao Shan, the manager of Beijing Yahao Housing Agency, agrees with the projection. She says the construction of affordable housing has been highlighted in the 5 new regulations, which actually is one way to adjust the mismatch of supply and demand. If supply catches up with the demand to some extent, only then, will the runaway prices cool down in time.

It's not just the issue of land supply being addressed though.

Another regulation is said to be aimed to spread the trial property tax beyond just Shanghai and Chonqing.

Now Wuhan, Hangzhou and Xiangtan have all recently announced they are ready for the pilot reform as well.

Gu Yunchang - the Vice President of China Real Estate Industry Association says expanding the trial gradually is the right way forward. He adds to rely on tax solely in bid to keep housing market in check is a mission impossible. The government should regard issues within the section as mid to long term hence draft measures accordingly.

The Chongqing trial focused on taxing high-end housing while Shanghai mainly targeted multiple house ownership.

China introduced the trial program back in 2010 to cool down the growing public complaints over increasing housing prices.

For CRI, I'm Sheng Chengcheng.