High rise residential flats under construction in the southern city of Shenzhen neighboring Hong Kong, China September 11, 2015. REUTERS/Bobby Yip

Following the lead of Shanghai and Guangzhou, Shenzhen has launched the city’s first “rental only” housing project on Wednesday, which required a local developer to not sell the property for 70 years, Caixin reported.

A source close to the Shenzhen Municipal Planning and Land Resources Committee told Caixin that the case is unique and that it was directly commissioned by the Planning and Land Resources Committee instead of local assigned agencies.

“Developers had to find new profit models after big cities started to implement the ‘rental only’ rule, which offers land to developers at a low price, but requires them to rent the property only, not to sell,” the report said.

Chinese authorities have been keeping a firm grip on land sales in an effort to curb housing inflation.

Measures include raising the bar for developers to acquire land, controlling land supply, or offering more land parcels that are designated for rental use only, the report added.

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