Most real-estate developers in Shenzhen may have to change the designs of their projects after a national regulation limiting the proportion of large flats took effect Thursday.

A maximum of 30 percent of apartments built after June 1 can have an area larger than 90 square meters, according to the regulation promulgated by the State Council earlier this week. This will require Shenzhen developers to build more smaller apartments. Only 38 percent of flats built in Shenzhen last year had an area of less than 90 square meters, according to Zhang Wei, an analyst with the real-estate consultancy Central China.

The national regulation does not clearly say whether the quota applies to individual projects, but Wang Feng with the municipal real-estate research center said the quota did applied to the city as well as to each project. This means most developers will have to change their designs.

Although the number of large apartments in property giant Vanke's high-end project Vanke City is in excess of the quota, Xiao Nan, vice president of Vanke, said the company would not change the project design for the time being, until the Shenzhen government clarifies the regulation.

"Our project will go on as planned, until the Shenzhen government gives detailed instructions on the State Council regulation," said Xiao.

The problem facing Vanke City is also faced by about 30 other projects, whose developers have obtained approval for the designs but are yet to obtain the permission to start construction, according to Central China.

However, as an affluent city which is allowed making some of its own economic decisions, Shenzhen may adjust the ratio or raise the dividing line. Last year, the Central Government increased the [TAX ON WHAT] tax for apartments above 120 square meters, but Shenzhen only increased the tax for apartments above 144 square meters.

"It's possible that Shenzhen would lift the ceiling. The land and property bureau is still discussing policy details," said Fu Lunwei, an official with the land and property bureau.

Xiao Nan said it was inappropriate to set a large-apartment quota for each individual project. "Such a quota, according to my understanding, should be applied in a certain area, rather than an individual project," said Xiao.

In another development, although the Central Government has started to levy 5.5 percent business tax on apartments sold after June 1 within five years of purchase, Shenzhen has postponed the deadline to June 6 to avoid a rush at the property transaction center.

Editor: Yan