Authorities in Shanghai are moving to widen control of land management and build more mid-priced accommodation to cool property prices, Shanghai party secretary Chen Liangyu said. As part of that effort, 3m sq meters of land will be set aside each year to build apartments with an average price of RMB3,500 per sq metre, which is considered affordable for salaried workers, Chen said. Luxury flats sell for around RMB10,000 per square meter in Shanghai, China's priciest market. Chen denied there was any threat of a bubble in the market, saying that the gap between demand and supply was narrowing and the total floor area of empty flats had dropped from 1.7m sq meters to 3m sq meters. Nonetheless, he said the government was keen to avoid creating situations of negative equity, which could spur bankruptcies, impacting the city as a whole.
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