Natasha Tucker reports on the housing market in the emerging mega-city Shanghai with its 15million population, where prices are rising and the traditional hutong style home is rapidly disappearing in favour of high-rise apartment blocks. Over the last decade Shanghai has witnessed the construction of a 103 million sq m of new houses and apartments and it is forecast that within 10 years every Shanghai family will have its own flat and every family member will have his own living space of 18 sq m. Comments on the 1990 planning law favouring the expansion of coastal cities such as Shanghai and the low priority given to the conservation of historic buildings, the introduction of new mortgage regulations and the increased period between sale and transfer of ownership for property. Peter Eales of o i solutions offers advice on the vagaries of doing construction or property business.