New Tack on Reforms: Long term mechanism for property market

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In a stable trend across the board, China's home prices edged down slightly in major cities: In the first month of 2018, new home prices in Shanghai and Guangzhou saw a 0.4-percent decline in January. Beijing, however, posted a slight increase on a monthly basis.

China's property market has been cooling since 2017, building speculation that the government will start to soften on its property policies in the near future. Industry insiders believed otherwise.

"The central government has persistently been saying that there is no way to lose the current regulation policies. And I believe it. I think in a period of time, the control of the price hike is definitely the most important thing in the real estate industry,” said Mo Tianquan, CEO of Fang.com.

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Industry insiders said 2018 will be a crucial year for the government to introduce a long effect mechanism for China's property market.

Both developers and home buyers are closely watching on if the government is going to come up with new policies on property taxes and ownership reforms.

"We saw the land supply increase last year, particularly for long-term rental use... which will definitely balance a little bit more between demand and supply," said Virginia Huang, managing director of CBRE Greater China.

The commercial property usually reflects a country's macro-economic growth. In China, the sector is recovering thanks to favored policies on the tack and financial front.

Long effect mechanism is a buzzword in China's property policies. But how do we create a healthy and effective long term policy? And will the most anticipated tax reform be discussed during the Two Sessions?