The central governments restrictions on foreigners buying property in China, issued in July may now be followed up with further regulations, this time on Chinas second-hand residential property market.

Many property agencies, insiders and experts believe a policy on second-hand housing will be drawn up shortly, because Julys policy shift has already pointed potential overseas house buyers towards the second-hand market.

Luo Yu Xinyitian real estate agent in Bejing says: "Foreigners enthusiasm for property (in Chinese cities) is mainly stimulated by the huge appreciation potential and the high-end second-hand market is regarded as another way for them to generate profit in the future."