Seven people have been arrested for real estate violations in the recently announced Xiongan New Area, sending strong signals to investors that the government intends to fend off risks from distortions in the property market, according to analysts.

The preparatory committee for Xiongan New Area, a transitional group founded on Saturday, has discovered 765 cases of real estate violations and shut down 71 sales offices, according to an announcement it made on Wednesday.

The announcement came after homebuyers flooded into the quiet, less developed area in Hebei province over a couple of days after the central government announced on Saturday its decision to choose three counties - Xiongxian, Rongcheng and Anxin - as the location of the new area to solve pollution and congestion problems in the capital.