A Study On Real Estate Development Investment Model And Its Taxation Policies Of Shenzhen

After many years of urban development,Chinese real estate developers obtain land mainly through biding,auction and listing.But Shenzhen real estate developers cannot grab land through biding,auction and listing because of severe shortage of residential land supply.To tackle this problem,Shenzhen launched the urban redevelopment project in 2009,allowing real estate developers to participate in the renovation of urban villages and old Industrial Regions,the developers are also allowed to trade land user right under agreements.Under this context,Traditional property developing model has given way to urban redevelopment projects and collectively owned land development(non-agricultural construction land and compensated land for expropriated land),this distinguishes Shenzhen real estate developing mode from those of the other cities.However,due to the prolonged developing process,complicated regulatory and taxation environment,developers are exposed to significant risks.Therefore,an in-depth study of Shenzhen Real Estate development modes,characteristics as well as taxation policies can aid investors in understanding the market trend,recognizing opportunities and controlling risks;meanwhile,it could serve as a role model for other cities facing similar circumstance.The article is composed of six chapters,firstly,it introduces the study background,purpose,content,method and relative theories;secondly,basing on analysis on the national and Shenzhen property development mode and trend,the article furthers the discuss on collectively owned land development and Urban Redevelopment,the relative concept,developing process,risk evaluation,investment method and tax policy and etc.And the ending concludes the article and the deficiencies.Our study shows that,although Shenzhen real property market undergoes adjustment because of macro-economic influence,shortage in residential land supply,city competitive edge,and population net inflow continue to push the property price upward,in the future,Shenzhen real estate market will still have some investment value.Shenzhen real estate investment development focused mainly on collectively owned land development and urban redevelopment.Because of the difference in cooperation method,collectively owned land development can be further classified into investing with land,jointly developing and equity investment,tax policy varies a lot among these method,jointly developing is the most tax efficient one.Urban Redevelopment have both the characteristic of First Level Land Development as well as Second Level Land Development,the developing period is longer,the difficulty is higher,it can be further classified into stock purchase,jointly developing,real property purchase and public biding;in tax treatment,through demolition and compensation,all parties will have the most optimal tax benefit.