By Li Hongmei

Shanghai saw a rush of people seeking a divorce over the past two days as couples worked out a way to escape the looming 20 percent tax on the profit from house sales.

Marriage registrars confirmed that the dramatic surge was triggered by the central government's property curbs announcement last week, with many couples seeking a quick divorce but a remarriage shortly after.

Houses bought more than five years ago as a seller's only residence are exempt from tax when resold. But families who own two houses and want to sell one of them are now targets in the government's bid to curb speculation in the property market.

If the couple divorce, each spouse will then own a property and one of them can sell the apartment that is tax exempt. After the transaction is complete, the couples get married again.

The registration center in the city's Zhabei District saw a record 53 divorces yesterday, its director surnamed Yin said. "We have never seen so many couples seeking a divorce in a single day, and by 2pm the number had already surpassed the previous high of 42 couples," he said.

The impact of the tax policy on "fake" divorces is even more obvious this time compared with other policies, such as couples wanting to get round restrictions on buying a second home, Yin said.

The number of people who applied for proof they are single, which is required in many property transactions, is also on the rise. The center dealt with more than 250 cases yesterday, also setting a record compared with the usual 60 to 70.

Meanwhile, real estate trade centers across the city also witnessed long queues.

At the Pudong New Area's real estate trading center, hundreds of people lined up outside waiting to complete transactions. Inside, it was standing room only and police were on hand to keep order.

An estate agent said several of her clients were eager to sell because of the tax. Some were even willing to drop their price.