House buying intention has seen an increase after Beijing and Shanghai announced further tax incentives on Monday.
The two cities announced to eliminate the distinction between ordinary and non-ordinary housing, which will result in tax reduction for property transactions.
Houses over 140 square meters are usually classified as non-ordinary housing and face higher transaction tax rates.
In accordance with the new policy, which will take effect on December 1, the two cities will exempt individuals from a 5-percent value-added taxes (VAT) on the sale of non-ordinary properties that have been owned for two years or more.
"We have seen noticeable rise in online consultancies and in customer visits. Many customers who have been hesitating now decide to tour around the houses for sale and embark on home purchasing. We can feel that their willingness to buy a house is going up," said Han Yu, a real estate agent in Beijing.
The two cities will also adopt a unified nationwide policy on personal housing deed tax.
For homes measuring 140 square meters or less, the deed tax is reduced to the minimum rate of 1 percent, while a reduced rate of 1.5 percent applies for properties larger than 140 square meters.
For those purchasing a second home for their family, a reduced deed tax rate of 1 percent will be levied for properties of 140 square meters or smaller, while a reduced rate of two percent will apply for properties larger than 140 square meters.
"The policies are really implementable. Like, for homes measuring 140 square meters or less, the deed tax is reduced to 1 percent. For families that have two children, the policy is really helpful. Since the two-child policy took effect, many families have more babies. As children grow, many families want to move from their original two-bedroom apartment to a three-room one. My house is no longer big enough to live, so, I have been touring around the houses for sale," said Zhao Jing, a Beijing resident.
In response to the sluggish property market, China has introduced a series of measures in recent months, including reductions in mortgage rates, lower down-payment requirements, and the easing of purchase restrictions.
New policies of Beijing, Shanghai help boost housing purchase intention
Egypt is making a push towards localizing the assembly and production of electric vehicles (EVs) to boost its auto sector while pursuing sustainable development.
Egyptian Prime Minister Mostafa Madbouly on Sunday reopened the state-owned Nasr Auto Company following a 15-year hiatus. Now the company has a capacity to produce more than 40,000 electric vehicles a year as well as EV batteries.
"Egypt, according to the prime minister, now has the capacity to produce half a million electric cars annually and the contracts signed with foreign firms so far will produce about 100,000 cars a year," said Mahmoud Khairy, a car trader and expert from Egypt.
Having free access to European and African markets, the most populous Arab nation can also leverage its strategic geographic location and huge market potential to become a regional hub for exporting self-manufactured vehicles.
"The country will benefit from local production by being partially self-sufficient in vehicles. This means less expenditure on hefty import bills," said Mahmoud Khairy.
The Egyptian government offers various incentives including tariff and tax breaks to encourage foreign companies to set up production locally, which in turn brings in advanced insights and expertise for EV manufacturing.
Egypt has witnessed booming sales of EVs. Electric cars increased from the beginning of July 2021 until the end of June 2024, raising the total number of licensed electric vehicles to 7,213, with BYD as the second best-selling car brand, according to the data.
Several European and Asian brands have already signed up to establish assembly plants in Egypt, including those from China.
Waleed Suleiman, the CEO of Spark EV Company in Egypt, is discussing with his Chinese counterparts plans to establish an assembly plant for Chinese EVs in Egypt.
"The Chinese cars are very advanced, high quality, very reasonable price. When you compare it with European cars and American cars, it's far away. If not a better quality, it's the same quality, but when it comes to price, it's much much lower than the other ones, and that's why people tend to go and buy Chinese cars," he said.
Experts from auto industry have also emphasized the need for EV infrastructure to keep up with the expansion plans.
"The number of recharging points increase gradually, covering main roads and highways and we are building new ones daily.There are 8 companies licensed to establish charging points," said Ahmed Zain, owner of Alienz Auto.
Egypt localizes EV assembly, production to lift its auto sector, reach sustainable goals
