Property tax legislation will be positive for the whole sector, said Yu Liang, president of China Vanke Co, the largest property developer in China.

"Reform in property tax is inevitable. It will affect the whole industry in a positive way," said Yu on Thursday, adding the company will actively participate in the construction of government-subsidized housing.

Lee Wee Liat, head of financials and property research with BNP Paribas SA, said the property tax will not rein in property prices because it is mainly aimed at speculative demand.