CHENGDU, March 1 (NBD) -- Sales of service apartments in the city of Shanghai will likely experience a severe slowdown as the metropolis is cracking down on the conversion of commercial property to residential, according to Yan Yuejin, research director of the think tank center of the E-house China R&D Institute. 

On January 6, the Shanghai Housing and Urban Rural Construction and Management Committee issued a circular saying that it is working with other departments to inspect commercial office buildings to protect legal rights of house buyers and maintain an orderly market. 

Online signing for commercial-to-residential properties has been suspended accordingly. 

Except for mature communities and those with a high rate of occupancy, commercial properties converting to residential will be ordered to improve. 

On Monday, one of Greenland Group's subsidiary, based in Shanghai, issued a letter to owners of Fengshanghui (in Chinese pinyin), one of its real estate projects, detailing compensation scheme for the commercial-to-residential conversion. 

A marketing staff with the property project told NBD that compensation and improvements are currently in process. 

A report in early January shows that sales of 146 quasi-residential projects, with saleable area totaling 3.38 million square meters, have been suspended in Shanghai.  

Email: lansuying@nbd.com.cn