The Shanghai Municipal Government issued a new regulation on October 7, limiting families to the purchase of one new apartment. It's part of nationwide efforts to curb property speculation and soaring house prices.

Every household in Shanghai is permitted to purchase only one more commercial residential property as of October 7 and anyone found in violation of the regulation will not be allowed to register their ownership of the property.

According to the regulation, property developers are required to pay a value-added tax (VAT) on land, which ranges from 2-5 percent. The higher the property is priced, the more VAT property developers have to pay.

The regulation also states that the city will take the lead in initiating a property tax in preparation for the official property tax to be launched.