Shenzhen's municipal government has tightened the rules on property sales to curb speculation in a city where prices have risen more than 30 per cent in some areas since January.
The new measures include requiring developers to release finished properties approved for sale to the public at the same time instead of in batches.
The policy will have a 'significant impact' on developers, weakening their pricing power, according to property consultants.
'Just as in Hong Kong, most Shenzhen developers only release a small batch of units in new projects initially to control supply and maximise margins,' said Richard Cheng Wei, the research head of Centaline Property Agency in China.
'Also, by releasing a small number of units, a developer can give the impression that there is a shortage in supply, thus boosting buying sentiment,' he added.
'If they are forced to put up all units for sale at once, they will have to be very careful on pricing.'
