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Housing Sales 6.4 Trillion Yuan in 2012; Chinese Government and State Banks Received 5 Trillion

A rough estimate, based on official statistics, shows that, in 2012, the Chinese government and the state banks’ revenue from real estate amounted to 4.8 trillion yuan (US$0.8 trillion). This was about 75 percent of the total real estate sales for the year of 6.4 trillion yuan (US$1.0 trillion).

In 2012, China’s commercial housing sales were 6.4456 trillion yuan, an increase of 10 percent over the previous year. Zhou Jiangong, editor-in-chief of the Chinese version of Forbes magazine, posted an online message that included comprehensive statistics from the National Bureau of Statistics and the Ministry of Finance. It said: "In 2012 real estate sales were 6.4 trillion yuan (US$1.0 trillion), with paid deed taxes of 287.4 billion yuan (US$46.3 billion), property taxes 137.2 billion yuan (US$22.1 billion), business taxes 405.1 billion yuan (US$65.3 billion), and land appreciation taxes 271.9 billion yuan (US$43.8 billion) for a total of about 1.1 trillion yuan (US$0.18 trillion) in tax. The bank mortgage balance of 12 trillion yuan (US$1.9 trillion) generated interest payments of 840 billion yuan (US$135.4 billion), plus land sales revenue amounted to 2.8517 trillion yuan (US$0.46 trillion). The government and the banks revenue from real estate totaled 4.7917 trillion yuan (US$0.77 trillion), accounting for 75 percent of the total revenue of 6.4 trillion yuan (US$1.0 trillion)."

11 types of taxes are involved in real estate development and maintenance: the business tax, value added tax, land appreciation tax, property tax, urban land use tax, deed tax, farmland tax, corporate income tax, personal income tax, stamp duty, the urban maintenance and construction tax, and the education surcharge.

Source: Guangming Daily, April 4, 2013