Even though Chinese regulation has put a clamp on excessive growth within the Chinese real estate market, business has continued to grow.As any intervention from the central government, there will always be good and bad points but the good surely overshadow the latter.The actuality remains that the average property value has increased by more than 10% to 15% in the most densely inhabited urban areas, especially the Central Villa District due to the lack of supply for high-end villas.Trading closely to the demand of villas, are the luxurious condominiums around CBD and Chaoyang Park.However, the asking price from the sellers is not as aggressive as before.

One of the major worries raised in the property market of China is that Beijing will experience a housing downturn in late 2008 and early 2009 in the aftermath of the Olympic rush.However, such fear is superfluous as Beijing housing boom is not principally tied to the Olympics and many analysts believe that economy growth in Beijing would continue to gown by double-digits regardless Olympics or not.For investors looking at long term is certainly good news.

So while Beijing & Shanghai being places with massive property expansion, many foreign interests in the Chinese property market has started to look elsewhere within the country due to the over-regulation of foreign ownership.Specifically that elsewhere has resolved itself into the second tier cities because Chinese government would have taken a while to institute regulations there.