For others, a well-researched real estate investment in China is simply good financial planning.

Because it is still new to outsiders, getting into the mainland property market is not always straightforward.

Accurate leasing statistics are hard to come by and figures for capital growth are even less reliable. So most buyers have to rely heavily on advice from developers and property companies.

''In rental yield terms, flat investments in Beijing or Shanghai are very attractive,'' said Billy Lo, China department director at Jones Lang Wootton.

''Returns on flat investments range from 15 to 20 per cent but this is not a mature market and buyers must be prepared to spend more time to find the right investment.'' If the flat is part of a new project, Mr Lo said investors should be familiar with the developer.

''Know the developer's strengths and weaknesses, especially if they are building in the mainland for the first time,'' he said.

''If possible, it is also a good idea to select projects being built by blue-chip companies with proven experience in China.'' Even new projects are sometimes reserved for the domestic market, so check if foreign buyers are allowed, to avoid wasting time.

You do not need to go through a Chinese solicitor as mainland authorities have issued many Hong Kong solicitors with permits which allow them to act on behalf of Hong Kong and overseas buyers when signing the sales and purchase agreement to buy a mainland flat.

If you intend to lease the property, it is best to work with a professional property manager. Mr Lo said investors should make sure that a property manager complied with the terms contained in China's Deed of Mutual Covenant which set out rules for owners, tenants and property managers.

Beijing and Shanghai are generally thought to offer the best deals to outside investors.

''The demand for rental apartments is higher and tenants are often prepared to pay more,'' said Mr Lo.

''The overall infrastructure is better and the laws and regulations are enforced more closely.'' Flat investments in Beijing and Shanghai also got a good rating from Richard Ellis director Dominic Leung, who said the high yields were the biggest attraction.

''Flat yields range from 13 to 14 per cent in Beijing and Shanghai and, in unique cases, yields can be as high as 20 per cent,'' he said.

When calculating investment returns, investors must include the cost of rental income tax in the equation.

This charge is levied by the Chinese Government on income generated by property investments and varies between regions and projects.

In some cases it can be as high as 20 per cent but can be offset against a number of operating expenses, including mortgage interest and maintenance costs.

''A 10 per cent return, after rental income tax, is still an excellent return,'' said Mr Leung.

In Hong Kong, although capital appreciation levels are still high, yields on some luxury flats have fallen as low as three to 4.5 per cent.

At the lower end of Hong Kong's property market, rental yields in some districts have dropped to 2.5 per cent.

For a good quality flat in the centre of Beijing, investors could expect to pay between $1,800 and $2,000 per square foot.

This is about 25 per cent of the price of a good quality Mid-Levels flat.

Similar to Hong Kong, China properties can only be sold with leasehold titles and for residential flats these commonly range from 30 to 70 years.

If buyers meet lending requirements, they can obtain mortgage finance from a Hong Kong bank but, according to Mr Leung, most buyers opt for the convenience of mortgage packages provided by developers.

These loans are normally shorter than loans by Hong Kong banks and rarely exceed 10 years.

Although there is a shortage of good quality accommodation in both Beijing and Shanghai, it can be hard to find tenants. This situation is also expected to improve as better links are formed between investors and property companies.