54ShanghaiFARLimitAdjustmentPolicyEffectAnalysis/FuJi[Abstract]In2003,ShanghailocalurbanplanninglawrevisionloweredmaximumFARsignificantly.Thepolicyplayedapositiveroleinlimitingcentraldistrictnewhighrisesandimprovingenvironmentalquality,butresultedinlanddemand-supplyconflict,increaseoflandprice,centraldistrictwealth-poordivision,urbansprawl,hightransportationexpensesetc.Therefore,whileimplementingthepolicy,landuseplanandlandsupplypolicyshallbeadjustedbymarketforcetocounteractthepolicy’ssideeffects,thatis,toincreaseresidentialandcommerciallandsupply,toimprovepublicfacilitiesofnewresidenceonurbanfringe,andtoimproveurbantransportationaswell.[Keywords]Urbanplanning,FAR,Policyeffect,Shanghai55565758