Shanghai is considering issuing new policies to control the surging property prices and ensure the supplies of lands reserved for mid and low-end housing, the Labor Post reported today.

In the areas with large land storage, the local government will withdraw lands left unused, and urge real estate developers to speed up their property development, according to the local government department yesterday.

In order to avoid short-term housing price manipulation, residents allowed to purchase properties on government preferential policies due to urban construction cannot transfer their properties to others within five years.

The government will also take measures to restrict the residents transferring their prepaid housing properties to others.

The supply and market demand in the local real estate market is comparatively balanced, but in some areas, the housing prices are growing fast, said an industry analyst.

The Shanghai Housing and Land Resources Administration has made many surveys and analyses on local property market, making a conclusion that strengthening land supply is key to control the over-heated local real estate sector.

The supply of lands slate for mid and low-priced housing properties should be guaranteed, the analyst said.

(Shanghai Daily November 27, 2003)