SHANGHAI, Mar 7 (AP) -- The Shanghai city government on Monday began imposing a 5 percent tax on profits from individual sales of residential properties owned for less than one year, part measures aimed at curbing property speculation.

Property prices in Shanghai jumped 10.4 percent year-on-year in the fourth quarter of 2004, according to government figures, making the city one of China's fastest growing property markets.

Thousands of people line up for a chance to buy new apartments, while many in the city complain they are priced out of the market.

The city plans to increase the supply of "ordinary" residential property while slowing the growth of residential property prices, according to a notice posted on the Shanghai government's Web site.

"We will continue ... to curb speculation and clean up various behaviors that disturb the order of the property market," the notice said.

Shanghai plans to increase the supply of low- and medium-priced apartments in the city to 65 percent of its total supply, the notice said, without providing the current level.

The local government said it also has lowered the standard for low-income families to receive preferential interest rates on mortgages.

Authorities also plan to continue to control land sales, upgrade old apartments and improve an online registration system for property transactions.