BEIJING: The Chinese city of Shanghai said on Monday it would reduce some taxes on real estate transactions effective from Dec. 1, a move that will support the local property market, according to state media report.

Shanghai will eliminate the division between ordinary and non-ordinary housing with more than 144 square meters (1550 square feet) and levy vat on non-ordinary housing, on par with ordinary housing standards.

Residents will be exempt from VAT when they buy a property for two years or more and sell it, according to state media. (Reporting by Liangping Gao and Ryan Woo; Editing by Sonali Paul)