BEIJING, April 8 (Xinhuanet) -- In just one day, the average housing price in Shanghai dropped 368 yuan (44 US dollars) to 7,785 yuan per square meter due to a new real estate policy, the Beijing Times reported Friday.

    The Shanghai Real Estate Administration on Tuesday publicized anew policy to curb skyrocketing housing prices in the metropolis. According to the policy, those who already bought houses or apartments in Shanghai with mortgages need to pay off the entire mortgage before selling.

    Some believe this policy will help stop speculation in China's booming real industry. Some overseas investors, expecting RMB yuan appreciation, bought dozens of apartments in China's coastal cities including Shanghai, according to the State Administration of Foreign Exchange (SAFE). Many local Chinese joined in the speculation, hoping to profit from a jump in housing prices.

    Most of these investors used mortgages from banks to fund their speculation. Some Chinese officials and experts said this kind of speculation contributes to China's escalating housing prices.

    The price of a luxury apartment in downtown Shanghai is 50,000 yuan (about 6,050 US dollars) per square meter, the equivalent of an average middle class families yearly income. Housing prices in many places of Shanghai doubled last year. Enditem