Land Tax Act to be friendlier to owners

"The incentive is not big enough to push people to sell or buy property," Su said. "Real demand and finance are the priorities for homebuyers in decision-making, not the tax rate."

Lai Cheng-i (賴正鎰), chairman of property developer Shining Group (鄉林集團), held a different view, saying that with the tax incentive many owners could begin to dispose of their properties in return for higher capital gains.

The nation's home ownership ratio is at 87 percent and many homeowners have more than one apartment or house, Lai said.

"The new tax measure will energize sales in the housing market and support the sector," he said.

The move also demonstrated the government's intention to lift the property sector. The positive sentiment should bolster the construction industry and optimism in the sector, he said.