The question on everyone's mind as we enter 2009 is a pretty obvious one. How is the Global Financial Crisis going to affect the real estate and financial markets? China seems to have stymied the initial tide quite well, but most experts I speak to agree that the real indicators will show up in the next six months or so.

Right now, E-House (China) Holdings Ltd. statistics show a 10 percent decline in housing prices and a 25 percent drop in the number of new homes sold in the second half of 2008. As prices are connected to demand, the Shanghai government has been taking steps to bolster the market and provide incentives.

One of these has been to raise the ceiling on mortgage lending in the city's housing fund program. Second-time home buyers now enjoy a ceiling of RMB600,000 through the end of 2009, provided at least two people cover the repayment and that they've already paid off their first house. The maximum loan amount is RMB800,000 if families have an extra funding account. While foreigners aren't eligible for the housing fund program, the government's incentive programs may help to bring overall stability to the buyers' market, benefiting all.