BEIJING- The price authority of an eastern city had imposed a penalty on a land developer for improperly pushing up housing prices, according to a statement released Monday by China's National Development and Reform Commission (NDRC).

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The price bureau of Ganzhou City in Jiangxi Province found that the Jiangxi Yunxing Real Estate Co had deceived consumers by disseminating rumors about future home price increases, according to the statement.

"The next stage of our housing project will be available in the first half of 2011 at the earliest, and prices are very likely to exceed 8,000 yuan a square meter," the company said in a notice to potential home buyers last December.

Ganzhou's price bureau imposed a fine of 500,000 yuan on the company and ordered the repayment of all money collected from potential buyers, in accordance with the country's Price Law.

The NDRC said that this case should serve as a warning for property developers to ensure strict adherence to the laws and regulations on pricing.

The NDRC announced new regulations last week that ordered property developers to clearly post their prices and sell homes at the marked prices starting from May 1.

The regulations aim to address public complaints about the lack of transparency in home pricing.