BEIJING, June 3 -- House prices plummeted in Shanghai this week, the first time after new price control regulations took effect; while housing market in Beijing has remained calm.

    The price of a residential apartment in Shanghai fell by an average 1,400 yuan, or 170 dollars per square meter.

    The Beijing News reports that the housing market in Beijing has remained calm.

    The regulations apply to all "normal residential houses", which all enjoy favorable policies to keep prices low. But Shanghai defines these as any houses under 1.5 times the average price.

    This is the maximum limit of the regulations.

    In Beijing, the rules only apply to houses under 1.2 times the averge price, that's 20 percent lower than in Shanghai.

    Analysts say the market needs time to adjust to these regulations.

    The Beijing News reports, new regulations in Beijing only limited to common residential houses that enjoy favourable tax policy; The biggest difference between the two cities is, Shanghai applied the maximum limit of the new regulation, and defined common residential house as under 1.44 times the average price, 20 per cent higher than that of Beijing.

    The market effect of the new regulation still needs time to clarify.

    (Source: CRIENGLISH.com)