Welcome to Hefei!!
Let me share some of my experience.
The most important factors in buying property are: Location, management and reputation of the developer.
I was looking for property in Shushan in 2004 and looked at some of the projects underdevelopment there.
One was Singapore Gardens along Chang Jiang Xi Lu, which looked good on the plans, they had some nice demo units and near the lake.
The other was Gui Hua Yuen (Sweet Osmanthis Garden) on Huang Shan Xi Lu.
My Hefei friends advised the last one, as the developer (Green Town, from Hangzhou) was one with the best reputation in China.
I'm glad I followed the advise: a few years after the owners moved in, the whole thing started to disintegrate. Shops that were destined to become trendy boutiques on the plans were rented out to garages and workshops repairing tools and equipment and the pavement was soon dripping with oil. Ceilings of the apartments were low and rooms small, in order to put the maxumum number of apartments and rooms etc.
By contrast, Gui Hua Yuen remains looking smart years after the opening.
You have to look out not to break your neck over the many staf tending to the gardens and facilities.
Our apartment was the only one that was decorated in our 8-unit building and we were only using it when in Hefei (we spend most of our time in Beijing). Still every morning a women with a bucket of water was going through the public space mopping the floors and stairs. And we were only paying RMB 2000 management fee per year!!
Since we were using the apartment infrequently and the possible bubble in mind, we sold it in 2009, with over 100% profit.
Talking about the bubble, I agree with Kaibo, that it is just a temporary dip. Some property may loose value, but those in good location and professional management will always keep their value on the long run.
Good luck with chasing houses!!
