Property taxes and fees : a tale of two cities

Housing affordability is a concern around the world. Australia and China have different political systems. The former has a western democratic system, while the latter has a communist/socialist system. Despite the difference in political ideology and economy, the people in both countries are complaining about the high property prices problem. There are many factors for high property prices. High property taxes and fees are alleged to be a major suspect for causing high property prices. The paper examines the property taxes and fees for residential developments in these two countries. Sydney in Australia and Wuhan in China are chosen as case study cities. The property taxes and fees in these two cities are examined and compared. It is found that property taxes and fees account for a substantial portion of property prices in both cities. Housing affordability can be enhanced if the relevant governments are determined to reduce the amount of property taxes and fees.