Affordable property is needed for lower income groups, mid priced property is needed for middle classes and for the growing rich, high quality property has to be provided at the top end of the market.

China has moved from it's rural economic bases to become far more reliant on it's cities. Migrants are continuously moving to the cities to work, this adds to property demand in these urban areas and means supply needs to keep up with the demand for property in China. With such a large population and only limited land, pressure on the land to build more housing is an issue and land prices therefore rise.

Property markets in many successful countries has helped drive the economy and this is no exception in China. Attracting foreign investment and foreign businesses is a key part of China's growth. Creating the housing, office buildings and retail outlets is a key factor in attracting this investment. In fact creating the favourable conditions for property development and investment attracts foreign companies to develop and invest in property themselves.

Investing in property in China is a long term investment. The government has set controls on short term purchasing of real estate in China fearing the boom from foreign speculators will harm the market's steady growth. The government has shown it is willing to intervene in the real estate market in China in a positive way, a longer term investment in a property market that is growing year on year such as the market in Shanghai or Beijing has done, makes sense.

The Chinese government has shown that it is willing to invest in infrastructure in the longer term, creating better transport, roads, public transport as well as general amenities for the population. Real estate in China is growing around this investment and the long term growth is being promoted.

A city such as Shanghai has seen a great deal of investment and thus the government's policies especially in regard to property in Shanghai were introduced to cool the market. The next step is towards the new emerging cities, the second tier cities and beyond such as Chongqing, Zhuhai and Wuhan. The disparity between rich and poor particularly in these second tier cities is large, but the government's strong investment plans are providing the investment needed to help redress this imbalance.

Property in China offers more investment potential than most other countries in the world. Provincial cities in China have populations of 7 million or more, these cities have huge potential in terms of the rental market, demand for property is growing and the general populaion has increased wealth. Real estate in China has a bright future.