Chinese authorities have introduced measures in Shanghai and Shenzhen aimed at cooling overheated real estate markets.

China's National Bureau of Statistics showed that property prices in Shanghai climbed 21 per cent in February alone, while Shenzhen prices rocketed 57 per cent in the year ending February.

In Shanghai, buyers of second homes must make a downpayment of at least 50 per cent for 'normal' homes, and a minimum of 70 per cent for 'non-normal' homes. The previous rate was 40 per cent for both types of property.

A 'normal' home is defined as being less than 140sqm, within the Inner Ring Road, and worth less than 4.5 million yuan. Properties situated between the Inner and Outer Ring Roads should not be worth more than 3.1 million yuan, and those outside the Outer Ring road, the property should not cost more than 2.3 million yuan to qualify as 'normal' property.

Any property falling outside these definitions is considered 'non-normal', and a luxury purchase.

Purchasers in Shanghai must also show that they have lived in the city for more than five consecutive years. Previously they were allowed to buy property if they had lived in the city for two years out of a three-year period.

In Shenzhen, first and second-time buyers who have taken out loans in the last two years, must make a 40 per cent downpayment. The previous downpayment required was only 30 per cent. The residency requirement for non-local buyers was raised to three consecutive years, compared with only one year previously.

Many believe the measures will not be sufficient to cool the market. Evergrande Real Estate Chairman Xu Jiayin told the South China Morning Post, "Prices will still rise in first-tier cities. Home buying demand is very large, and they have strong purchasing power as the economy is robust."

Cooling measures were also introduced in Wuhan and Nanjing.