More cities likely to follow Beijing and Shanghai
Some analysts say confidence in major cities39; property markets improving
But more measures seen as needed to boost consumer confidence

BEIJING, Nov 19 Reuters Beijing and Shanghai have announced tax breaks to spur home purchases as distress in the property sector continues to drag on growth in the world39;s secondlargest economy.

Other major Chinese cities are widely expected to follow suit and the measures come on the heels of some tax breaks on home and land transactions unveiled by China39;s finance ministry last week.

Beijing and Shanghai residents looking to sell an existing property will be exempt from paying the valueadded tax so long as they have held onto it for more than two years, statements from local authorities said on Monday.

The two megacities also raised the standard for levying deed tax to properties larger than 140 square metres 1,500 square feet, up from 90.

Chinese policymakers urgently need to arrest a slump in the property market, once a key growth driver that at its peak accounted for around a quarter of economic activity. But a broader consumer and investor confidence crisis has glued prospective buyers39; wallets shut.

The steps by Beijing and Shanghai have done little to boost property stocks. China39;s real estate share index has lost about 1 so far this week while an index for Hong Konglisted mainland property developers is roughly flat.

The new measures this month come on top of a…