China has recently announced a reduction in taxes for home purchases in order to stabilize the housing market.

The government has lowered the home purchase deed tax to 1% for buyers of first and second homes, specifically for flats measuring 140 square meters or less.

This is a decrease from the previous tax rate, which could be as high as 3%.

The decision, revealed in a joint statement from the Ministry of Finance, State Taxation Administration, and Ministry of Housing and Urban-Rural Development, aims to support a recovery in housing transactions and address the ongoing decline in property prices.

This move is expected to encourage home buying and stimulate the real estate sector in challenging market conditions.