Shanghai will restrict the allocation of land for luxury housing projects in order to increase supply for mid-range and lowpriced homes, South China Morning Post said. The city's housing and land management bureau would also implement a bidding system for companies hoping to participate in the renovation of old residential areas.
The move followed complaints by local residents that property speculation had driven home prices beyond the reach of many households, while over half of those buying high-end housing come from outside the city and are mainly for investment purposes.
There are reported to have been protests over plans to relocate residents for new projects in the north of the city.