Guangzhou R&F Properties has boosted the number of smaller flats on offer in as many as three mainland housing projects in compliance with new central government rules designed to cool property speculation.
Under a new rule issued last month, at least 70 per cent of the flats in new projects must be no larger than 90 square metres, a restriction analysts expect will narrow developers' profit margins since smaller flats command lower prices.
'Our original plan was to build 50 per cent to 60 per cent small flats,' R&F chairman Li Sze-lim said.
He described the changes as 'minor', saying they would have 'no impact' on flat prices.
Nevertheless, some developers have asked the government to reconsider its decision.
'As many sites are planned for luxury residential developments, the developers suggested the restriction on flat sizes be relaxed to 110 square metres to 120 square metres,' Mr Li said. 'I believe the government will adjust the rule.'