Shanghai has introduced preferential taxation measures, including unifying housing standards and cutting home transaction tax, to bolster the housing market.

Taking effect from Dec 1, the former 2 percent transfer income tax imposed on apartments larger than 140 square meters will be reduced to 1 percent, the same for properties at or below 140 sq m.

In addition, the value-added tax is exempt for all residential apartments as long as the properties are kept by the home sellers for two years or longer.

Shanghai's new tax reduction measures also include benefits in deed tax. For homes of 140 sq m or less, the deed tax is reduced to the rate of 1 percent.