A report by Peking University's Lincoln Institute, says the basic conditions for levying a property tax have been met in Shenzhen. The report provoked a new round of discussion on the property tax.

Insiders say detailed policies could be rolled out after the National Day holiday. Cities such as Shenzhen, Beijing, Shanghai and Chongqing are likely to become the first batch of trial cities for the new policy.

Song Ding, Senior Analyst of China Development Institute said "Under the current situation when other policies aren't likely to be rolled out, the possibility of levying the property tax has become much higher. And it will add costs for property investors, who may have to pay more tax for their properties."