A hitherto anonymous region near China’s smog-choked capital has been overrun by house buyers after Beijing unveiled “historic” plans to build a new city there in a bid to slash pollution and congestion, The Guardian has reported.

Plans for the Xiongan New Area, a special economic zone that authorities say will eventually cover an area nearly three times that of New York, were announced by the Communist party’s top leaders on Saturday with a flurry of government propaganda.

In a joint statement two of China’s most powerful political bodies, the central committee and state council, described the new city, which will straddle three counties about 100km southwest of Beijing, as “a strategy crucial for a millennium to come”.

“ major historic and strategic choice made by the Chinese Communist party’s central committee with comrade Xi Jinping as the core,” the joint notice added using the latest political title to be bestowed upon China’s paramount leader.

Official news agency Xinhua said Xiongan’s creation would reduce pressure on China’s car-clogged, 22 million-resident capital, and “usher in a new chapter in the country’s historic transitioning to coordinated, inclusive and sustainable growth”.

“Xiongan will be an answer to China’s growth conundrum: breakneck urban sprawl must give way to a balanced and inclusive development strategy,” Xinhua added.

“More than a mere replica of China’s past success … it will tell the tale of the future of a new city.”

President Xi said the city would be “a demonstration area for innovative development … should prioritise ecological protection improve people’s well-being.”

Bargain hunters reacted immediately to the hyperbole, flocking to the region in their droves to hoover up homes they hoped to resell for huge profits.

Local media reports claimed property prices nearly doubled in the hours after the surprise announcement.