(Yicai Global) Jan. 14 -- Dongguan aims to reduce risks in its housing market as it becomes the first Chinese city to allow house buyers to cancel purchases within two days without providing a reason from March.

Local authorities have greenlighted a policy to include the option in all house purchase contracts from March in the city, located in southern Guangdong Province, Dongguan municipal bureau of housing revealed in a policy document. The move is part of efforts to reduce irrational property deals and contractual disputes, according to an industry insider.

The city's housing prices have nearly doubled over the last four years, driven by population density. Growth cooled last year to 5.1 percent amid policy adjustments and controls.

Dongguan is home to one of the world's largest manufacturing bases which has attracted leading international players like South Korea's Samsung, Japan's Hitachi and Philips from the Netherlands.