Home buyers face squeeze as Shanghai curbs office-to-flats market

Beijing

A CRACKDOWN In Shanghai on commercial office projects converted into residential apartments will squeeze speculators, but could also hurt bona fide homebuyers already struggling with high prices and buying restrictions.

Some property developers in the city bought land zoned for commercial use as a cheaper alternative to plots meant for homes. Apartment blocks put up on these sites were consequently cheaper, and weren't regulated under home-purchase rules brought in to curb speculation and soaring prices.

The properties proved popular with investors and homebuyers shut out of the market by the buying restrictions.

But Shanghai last month rolled out a "clean up and rectify" campaign for commercial-turned…