Based on their combined income, the Yaos calculated that the most they could afford was about 900,000 yuan (US$112,500) for a new apartment. But most of the apartments they looked at in the locations of their choice cost well over 1 million yuan (US$125,000). "The cheapest apartment we thought was suitable cost 1.5 million yuan (US$187,500)," said Yao.

After weeks of searching, the Yao's gave up on the idea of buying a new home. "We had no choice but to make do with our tiny apartment," Yao explained. "My mother has been really understanding, but I still felt guilty."

Last month they read in the local newspaper that property prices in Shanghai had dropped. "We couldn't believe it at first," Yao said. "We had wanted to rush straight to the property agent to start searching all over again."

But the couple found that their luck hadn't changed as much as they had hoped.

Property prices in Shanghai had come down on average, but in their preferred locations they remained firm. But Yao and her husband are hopeful. "We believe that prices of the apartments we want to buy will come down," she said. "We have waited so long, we can afford to wait a bit longer."

Beijing

Also playing the waiting game is Fang Liming, who is planning to buy his third home in Beijing. Business has been good for the 38-year-old designer, who is always on the look-out to trade up. "I work from home and I find that I am always in need of more space and a better environment to help sharpen my creativity," Fang said.

He bought his first home, a 50-square-metre apartment in a residential complex, in 1998 when he was a fledgling designer new to the business.

With wider recognition and increased income, Fang traded up in 2002 to a 120-square-metre apartment in a secluded block on a quiet tree-lined street. "To me this was the ideal place to live and work," he said. "The rooms are spacious with lots of windows and the surrounding environment is quiet and serene."

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