Authorities denied the rumours but it was too late as some had already taken matters into their own hands.
The latest rush to divorce has hit Nanjing.
The South China Morning Post reports that many Chinese cities have introduced measures to restrict home purchases with Beijing doing so five years ago.
Buyers there had to make five consecutive years of local social insurance payments to qualify to buy a flat in the capital, it said.
It said Nanjing had now imposed new rules that meant non-permanent residents could not buy new or existing homes if they already owned property in the city.
The latest Global Property Guide revealed demand for property in China was strong. It said China's housing market was the best performer in its global house price survey after the government introduced measures to support the market.
The report said demand in Shanghai was rising strongly.
"In June 2016, the value of Shanghai homes sold rose 22 per cent from a year earlier, after a year on year rise of 32.9 per cent the previous month," it said.
The report said despite a surge in demand in some cities, there was quite a bit of oversupply in other areas.
"Currently, unsold homes are estimated at around 13 million," it said.