The speculators in China's booming housing market have shifted their attention and money away from Shanghai to Beijing and Shenzhen.

In recent months, Shanghai's housing price has experienced an overall drop of about 30%. Real estate investors (or shall we say speculators) are exiting the market in droves. The cooling-off in Shanghai's housing market didnot scare off people from speculating on properties. With abundant liquidity and few places to park their money, they simply started pouring into housing markets in Beijing and Shenzhen etc.

A Morgan Stanley economist Andy Xie points out some interesting data that suggested that "Residential property sales (in Beijing) in the primary market look set to reach 35% of Beijing’s GDP in 2005 from 25% last year." See also China Housing Bubble to Burst

According to data compiled by Shenzhen Municipal Bureau of Land Resources and Housing Management, the average selling price of residential properties is around RMB 4994 per square meters (about US$69.5 per square feet) in 2004. But in 2005, that number has jumped up 15%. In November 2005, the average price hovered around RMB 8328, an increase of 38 percent.