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According to recently released report by the Xinhua news agency, China has completed the construction of a national and integrated system for real estate registration. This will be a significant step forward in enhancing the transparency of property ownership. Back in 2014, China had issued regulations mandating real estate owners to register their properties with the authorities, but local governments had strongly opposed the move and refused to disclose their records.
Industry experts have emphasized the importance of a consolidated real estate database across the entire nation for the central government to monitor the housing market and compel corrupt local officials to reveal their multiple properties procured through illegitimate means. According to Xinhua, the Minister of Natural Resources, Wang Guanghua, announced at a work conference that China has finally accomplished this system after a decade of arduous effort.
According to state television, there have been over 790 million certificates for real estate registration issued across the country in the last ten years. Establishing a national database of ownership information through a standardized real estate registration system could enable China to introduce a property tax at some point in the future.
Several experts view the recent development as highly significant and representing a major achievement for the real estate sector. They believe this might be the key to resolving persistent issues such as fragmented registration information throughout the country and can be considered as the achievement of a unified real estate information system at the national level. Additionally, analysts suggest that this move contributes to the healthy and sustainable growth of the country’s extensive real estate industry by closing loopholes in the registration process that could be exploited for financial gain.
The implementation of a unified registration system would provide objective data for high-level authorities. If the real estate data is distorted, it would not aid in managing the macro-economy. Additionally, the introduction of a property tax, which has been under discussion for many years, could potentially be implemented soon as the unified registration system indicates that preparatory work has been completed.
China has been testing out property tax reforms in certain regions, following a decision by the Standing Committee of the National People’s Congress in October 2021 to allow the State Council to pilot these reforms in specific areas. The unified registry might make it easier to introduce the property tax if it does end up being implemented.
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