Beijing property expo sees fewer projects from city

Potential buyers also began to show more interest in new homes. An online survey by Soufun.com, China's largest property information website, showed that 88.5 percent of respondents said they will prefer new homes, and 68.4 percent said new-home prices will rise after the introduction of the new property policies.

More potential buyers are switching their attention to overseas property projects.

At the expo, new participants such as Lithuania, Latvia and Bulgaria stood side by side with traditional exhibitors from the United States, Canada and Australia.

A saleswoman from Remax California, a property broker specializing in projects in Southern California, said her company has received more inquiries this year.

"Instead of investing money in a single house in a good community, I recommended my clients buy three to four homes in a less well-off community as they can rent more," said the saleswoman.

"Actually the return rate of the latter option is higher than the first option.

"You can spend $400,000 to buy several houses in the US. How much could you buy in Beijing with the money?" she said.

In the European property investment market, Cypriot and Portuguese projects were the most popular at the expo.

The two countries' property investment projects have a much lower threshold compared to other European nations, and it is much easier to acquire a residency permit or permanent residency.

For example, Cyprus grants foreigners permanent residency if they purchase a property worth at least 300,000 euros ($392,442).

"This is a very favorable emigration policy for Chinese," said Wang Qian, general manager of Worldway Group's Beijing office, an investment immigration brokerage.

"The project does not require you to stay for a certain period during the waiting phase, and does not require you to run a local business, as most other European countries do," said Wang. "You could earn permanent residency for your family members with a single investment, and enjoy the country's low tax rate."