Shenzhen has raised the maximum per-square-meter rate for homebuyers to be eligible for a preferential deed tax rate, a move aimed at reflecting the city's soaring housing prices.

The regular deed tax rate is 3 percent. However, buyers of cheaper apartments priced at equal to or less than a certain per-square-meter threshhold become eligible for a favorable deed tax rate of 1.5 percent.

The municipal land resources and housing management bureau announced Monday that the threshold had been raised to 17,160 yuan per square meter in Luohu District, 17,940 yuan per square meter in Futian District, 17,160 yuan per square meter in Nanshan District, 16,380 yuan per square meter in Yantian District, 11,700 yuan per square meter in Bao'an District and 10,920 yuan per square meter in Longgang District, an average increase of 56 percent from last year.

This means that a resident buying a 17,000 yuan-per-square-meter apartment in Luohu District will have to pay 1.5 percent of the total purchase amount in deed tax, while another one buying a 18,000yuan-per-square-meter apartment in the same district, will have to pay 3 percent of the total amount.

The new standard is expected to reduce the amount of money paid by homebuyers in deed tax, experts say.

In July 2005, when Shenzhen first announced a favorable deed tax policy, the threshhold was 11,000 yuan per square meter in Futian District, and 6,500 yuan per square meter in Longgang District.