The new policy has slowed the entry of speculative capital to China's real estate market, but benefited overseas investors adopting a long-term approach towards investment.

Meanwhile, demand for luxury residential apartments remains strong both in Beijing and Shanghai.

Fidel Ramos, ex-president of the Philippines, recently met Li Ruohong, president of Beijing King Resources Real Estate Co, a major villa developer, showing his interest in investing in China's high-end real estate sector.

Shanghai also saw robust sales at a number of new projects in the third quarter. Jing'an Four Seasons sold out all 192 available units within one month, at an average price of over 30,000 yuan (US$3,797) per square metre.

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