Tao Xiao-xing, deputy director of Shanghai's housing management bureau, has been investigated for possible discipline violations, Xinhua News Agency reported on Thursday.
No details were available in the report, but "discipline violations" is generally a term for corruption when it applies to an official under investigation.
Sources in Shanghai said 59-year-old Tao might be linked to land corruption related to the Park View Court project, a high-end community located in the downtown Xuhui district.
The land once belonged to the Shanghai No 4 Wireless Factory, which began developing the project with an Indonesian businessman surnamed Huang in 1993.
But a dispute of interest later broke up the partnership, and in 2006, Huang started to report problems in the project to the local government. He also provided a buyer list, including many officials, who had bought properties with big discounts up to 90 percent, Caixin Online reported.
Tao is so far the third division-level or above official in Shanghai's housing management bureau to fall from a position. The other two are Yin Guoyuan, former deputy director of the bureau, and Zhu Wenjin, former director of the bureau's land management division.