Growth is among the moving factor for the rise in regulations and taxes in the Asia Pacific region. According to a report by propertywire.com, "Monetary policy, taxation, regulations and underlying fundamental drivers such as demographics and urbanization will have a significant impact on property markets in the Asia Pacific region."
The booming economy in the Asia Pacific region shows emerging patterns of growth and development. Along those lines, the implementation of regulations and tax policies will indeed influence the property markets as well. The growing property market of the Asia Pacific region is outsmarting the other nations these days. According to a report by worldpropertyjournal.com, "Driven by rapid urbanization, demographic growth, the expanding middle-class and increasingly wealthy households, the economic growth in Asia Pacific will remain ahead of the world average in the coming years."
Statistics have shown that "Asia Pacific will continue to outperform in 2015 and there is a 4.4 percent of economic growth, compared to 2.9 percent globally." With all these unprecedented growth, the drawbacks are more about the regulations and the tax implications. According to a report by propertywire.com, "Perhaps now more than ever, property market observers are looking to policy makers, such as Janet Yellen at the Federal Reserve, the Singapore government, the Reserve Bank of Australia, the People's Bank of China or the Japanese government for clues about how the markets will perform."
When tax and regulations are imposed, it affects the overall performance of the property market in the Asia Pacific region and it can be seen in the recent changes that nations have implemented. For instance, "A revised super luxury tax of 5% on the purchase price for houses above Rp5 billion or a building area exceeding 400 square meters has been introduced in Indonesia" as stated in a report by propertywire.com.
Other tax changes took effect in Taiwan. Statistics have shown that "The recent announcement of the new capital gains tax scheme in Taiwan could further weaken the confidence of property investors since it involves a 45 percent tax on profits."
