But an ad for plush apartments in a new development caught his eye not long ago and once again inspired him to upgrade. Only one thing stopped him from buying the 200-square-metre apartment in an upscale residential district: the high deposit required for mortgage financing.

In line with the government's clamp down on excessive speculation, banks have raised the minimum down payment for mortgage loans to 30 per cent of the total property price. Previously the minimum payment was 20 per cent.

Fang said he doesn't have enough ready cash to pay such a high down payment and he is reluctant to sell his current home in a weak market. "I haven't made a decision yet," he said. But "I think I may have to put the whole thing on hold for a while  You never know, the price may come down tomorrow."

Shenzhen

In Shenzhen it is a similar story. Yang Qing, a government employee in her 30s, said she and her boyfriend simply can't afford the 30 per cent down payment to obtain a mortgage loan. "We are already paying 1,200 yuan (US$150) a month in rent where we live at the moment," she said. "It is a big chunk of our combined income and after rent and paying for essentials we have very little left over to save."

Fang Shan, a 28-year-old white-collar worker at a multinational company in Beijing, and his fiance, have decided to press ahead with buying an apartment regardless of market uncertainty. "Property prices in Beijing will not come down," he said. "No matter what the government does, high demand will keep prices up."

And he has no time to wait for the market to prove him wrong. "We have got to buy an apartment before we get married," Fang added. "This is what we both want."

Fang said he has been sharing an apartment with a colleague since he came to work in Beijing two years ago. His fiance is also sharing an apartment with her friends.  

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