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"I don't know where they got their sources or data but they are inaccurate," bureau spokesman Fu Lunwei, said.

"In recent years, property purchases by people from Hong Kong have accounted for between 8 and 10 percent of the total it's very stable."

Fu's remarks came soon after the housing bureau and the Shenzhen branch of the State Administration of Foreign Exchange jointly issued a measure restricting people from both Hong Kong and Macao to buying just one apartment for personal use in the southern city.

The measure came into effect at almost the same time as a Hong Kong newspaper reported that the total number of Shenzhen properties bought by Hongkongers had risen to 25 percent, from just 11 percent a year ago.

Some locals saw the introduction of the measure as an attempt to prevent Hong Kong speculators from creating a property bubble.

But, "that is totally untrue," Fu said. "There is no correlation between the two at all the measure is in line with the central government's decision to gradually limit the purchasing power on the mainland of people from both Hong Kong, Macao and overseas, and to stop house prices from rising too quickly.

"We actually planned to launch it in June, but it was delayed," Fu said.

Michael Choi, chairman of Land Power International, said the new measure "was unlikely to make a dent on local property market".

"Hong Kong residents account for just 6 to 8 percent of all Shenzhen property buyers, so the policy won't bring down prices substantially.

"It is also unlikely Hong Kong people are speculating on properties in the city because most apartments are bought for personal use or for renting out there are not many Hongkongers who own two or more flats in Shenzhen," Choi said.

(For more biz stories, please visit Industry Updates)