SHENZHEN - Shenzhen in South China's Guangdong province on Tuesday became the latest major Chinese city to reduce taxes for transactions involving larger houses.

The city said in a notice that it will scrap the distinction between ordinary and non-ordinary housing starting on Dec 1, which will unify favorable tax policies for the two categories.

According to the notice, non-ordinary houses that have been owned for two years or more will enjoy the same tax exemption from 5-percent value-added tax (VAT) as ordinary homes during transactions.

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In Shenzhen, non-ordinary housing usually refers to houses with building areas exceeding 144 square meters.

The announcement by Shenzhen follows similar moves by Beijing and Shanghai, another two first-tier cities in China, to eliminate the distinction between ordinary and non-ordinary housing.

China has rolled out a slew of measures to prop up its sluggish property market -- including cutting mortgage rates, lowering down payment ratios and relaxing purchase restrictions.

Amid the emergence of such pro-housing policies, China's property market displayed positive changes in October, in the form of narrowing price declines, stronger sales and improved market sentiment.

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The decline in the prices of commercial residential homes in China's 70 large and medium-sized cities generally moderated on a month-on-month basis in October, the National Bureau of Statistics said last Friday.