采访/易如 编辑/宋风 后制/舒灿
China Taxes Push Property Prices Up 70%
Despite four years of legislation in an attempt try
to rein in property prices in China, they keep soaring.
Since the beginning of 2012, Beijing’s
housing prices have escalating for 20 months.
In September this year, prices rose by 20.6%.
Chinese real estate claims taxes
accounted for 70% of the costs.
That means that the regime absorbs at least
70% of the high costs paid by the buyers.
The following is our news report.
In October, among 70 cities in China, first-tier cities
experienced more than 20% property appreciation.
21 cities had more than 10% appreciation
rate, and only one city had a drop in price.
According to state-controlled China Central Television
(CCTV) Chinese property developers have failed to
pay at least 3.8 trillion yuan ($624 billion) in land taxes.
This has happened during a period between 2005 and 2012.
In the CCTV reports on the black hole in land
appreciation tax (LAT), 45 firms were named.
They include SOHO, China Vanke, and Huayuan.
12 of these firms have denied the accusations.
On the evening of November 24, Ren Zhiqiang,
CEO of Huayuan Group, denied the reports
and vowed to file a lawsuit against CCTV.
Ren Xiang explains property prices include
70% of taxes, and accounts for more than
180 different types of fees and charges.
In November 2012, during a west coast real
estates conference, well-known economist
Larry Hsien Ping Lang commented on this.
“If you take out all the taxes,
China’s property will drop by 70%.”
Ren Zhongdao, financial analyst: “Prices are too high.
People of course complain, leading to more and more
mass protests, and no one wants to take the blame.
That’s why the hidden causes are being exposed.”
Reuters reported on data from China’s Finance Ministry.
Government land revenues rose 50 percent
from the previous year, to 2.7 trillion yuan
during the first nine months of this year.
Reuters calculated that the Beijing’s regime has sold 14.9
million square meters of land in the first 10 months this year.
This year, revenue from land
sales doubled to 120 billion yuan.
This is in comparison to last year’s 65 billion yuan.
21st Century Business Herald quoted
data from YaHao Real Estate.
It indicated that central and state-owned enterprises
occupy the majority of Beijing ‘s commercial land.
In 2012, state-owned enterprises made
8 of the top 10 real estate sales in Beijing.
Xie Tian, Professor of the School of Business, University
of South Carolina Aiken: “The executives of these state
owned real estates are appointed by the government.
They share mutual interests, to take
advantage, and to supply each other.
State-owned enteprises are a monopolising
tool for the Communist regime to use.”
Xie Tian indicates that the Chinese Communist
Party is the culprit of rising property prices.
Officials enjoy profit through corruption, and property
developers are also in the chains of the profit ring.
In fact, on top of the regime legislation to rein in
prices, local governments also have their own policies.
Beijing, for instance, issued 15 rules, but real
estate prices kept rising for more than 20 months.
In October, 69 out of 70 cities had
price increases in new housing.
21 cities rose more than 10% in
comparison to the same time last year.
Prices in first-tier cities, such as Beijing, Shanghai,
Shenzhen and Guangzhou rose more than 20 percent.
This is in comparsion to last year. Wenzhou
is the only city that had a drop in land prices.
Xie Tian: “The CCP has no desire to drive prices down.
The regime knows very clearly that the real estate
market, as well as the stock market, is the best
mechanism to take assets from the Chinese people.”
Xie Tian says that the CCP is actually
anxious to raise real estate prices.
It not only raises GDP, but also
creates the illusion of prosperity.
Local governments also get to praise its
own performance, to cover up corruption.
Xie Tian indicates that should the CCP regulate
the market and corrupt officials, real estate will
collapse, along with the collapse of property
developers, and the state-owned enterprises.
What will follow could be the collapse of
current Chinese society and the CCP system.
Therefore, the CCP will not regulate it, and
property prices will only get higher and higher.