Shanghai Municipal Housing Support and Building Administrative Bureau issued a reminder Wednesday that people who have held a Shanghai residence permit for more than three years are allowed to purchase a second home.
The property industry took the announcement as a loosening of house purchasing restrictions, although the bureau denied this.
The stock prices of real estate firms increased sharply on the announcement. Powerlong Real Estate, Glorious Property and Greentown China saw increases of 20.71 percent, 14.79 percent, 14.18 percent respectively Wednesday.