BEIJING – China’s capital Beijing will eliminate the distinction between ordinary and non-ordinary housing in a bid to reduce the tax burden when transacting larger homes.

Non-ordinary properties owned for two years or more will be exempt from a 5% value added tax (VAT) on transactions, meaning they will enjoy the same tax exemption as ordinary houses, according to a notice published on Monday by the municipality.

The removal of the distinction will come into force on December 1.

In Beijing, non-ordinary houses are defined as properties whose construction area exceeds 144 square meters or whose transaction prices exceed certain levels depending on their location.

China has rolled out a series of measures to support the sluggish property market, including cutting mortgage rates, lowering down payment ratios and easing purchasing restrictions.

Also on Monday, the Shanghai metropolitan area announced its decision to remove the distinction between ordinary and non-ordinary housing, subjecting the latter to a reduction in VAT and personal income tax.

Amid the latest wave of pro-housing policies, China’s real estate market showed positive changes in October, with fewer price cuts, stronger sales and improved market confidence.

The decline in commercial residential housing prices in China’s 70 large and medium-sized cities generally moderated month-on-month in October, the State Bureau of Statistics said last Friday.