Shanghai officials announced Monday that the price increase for newly-built homes in 2011 should be smaller than the increase in the city's annual economic growth or the local residents' incomes, the financial website Caijing.com.cn reported Tuesday.

The Shanghai government set its economic growth target at around 8 percent in 2011, according to the report.

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The average selling price of new homes in Shanghai was 14,213 yuan ($2,163) per square meter in 2010. Considering the 8-percent growth rate, the government's target should be around 15,350 yuan per square meter.

According to statistics released by the Shanghai Statistics Bureau, the city's GDP increased by 9.9 percent year-on-year in 2010. Urban per capita disposable income increased by 10.4 percent – to 31,838 yuan – last year. Rural per capita disposable income was 13,746 yuan – up 11.5 percent year-on-year.

The central government urged local governments to announce their housing control target before the end of March. As of Monday, three days before the deadline, 40 cities had announced their home price control plans, among which Shanghai is the first first-tier cities to set the target.