New taxes should be aimed at specific targets to curb speculation and help develop a healthy realty sector

News of an extension of the property tax pilot scheme has spread across China through both government and non-government channels. Amid signs of rising housing prices in recent months and the warming of the real estate market, the news was not totally unexpected.

According to recent China Index Academy data, prices of new houses in major cities continued to rise in August, with the average in 100 cities increasing for the third straight month to 8,738 yuan ($1,378) per square meter, an increase of 0.24 percent from July. In August, new housing prices in 10 first-tier cities such as Beijing and Shanghai increased 0.45 percent month-on-month.