China's provisional law on realty registration came into effect on Sunday, according to which property ownership will be registered in one system that can be accessed online. Some residents in several cities have already got new versions of their ownership certificates to replace the old ones. Comments:
A natural question of the law is that will it affect realty prices? Months before the law came out, the domestic media had speculated that corrupt officials would sell off their properties, leading to an abrupt fall in realty prices. Such expectations have had a certain effect upon the realty market bringing down house prices a little, but in time the effect will disappear.
Yang Hongxu, a senior researcher at Shanghai E-House R&D Institute, March 2
With the new law coming into effect, several cities have already established new bureaus to handle registrations. The State Council, China's cabinet, said it planned to complete the national registration within half a year, so are these new bureaus truly necessary? Establishing a new bureau involves additional administrative cost, thus making the taxpayers' burden heavier, which is against the ongoing trend of reform.
eastday.com, March 2
A dilemma has long existed in China, as people have permanent ownership of a house, but only a 70-year right to use the land on which the house is built. This dilemma should be solved by changing the law. However, the new property rights certificate, which combines land and house rights, actually extends the limit of 70 years to the house; property owners' rights are being violated instead of being protected.
Hua Xinmin, writer and building preservationist, via Sina micro blog, Feb 28
Many people worry that a unified property registration system is the prelude to collecting a property tax. These concerns are unfounded, at least in the near future, because a national property tax has to address a number of issues, such as should it be collected in terms of a family or individual? What would be an acceptable tax rate? Property prices rise and fall, how will the taxable value be determined? Before a property tax is rolled out nationwide, there should be a full discussion.
Huang Wenzai, a Guangzhou-based real estate developer, March 2
