"Investors look for something that is good quality and in a prime location, which guarantees you long-term security," says Lau. He says that three-bedroom apartments sell for an average of US$3,500 per square metre. In a very popular area of Xintiandi, next to the commercial area, there are apartments for sale for around US$4,000 per square metre, which equates to £355,000 per unit - not bad for a three bedder in a central city location.In The Emerald Gardens, Savills is selling luxury villas at a development on the eastern side of the river, with communal swimming pool, tennis courts, leisure facilities and green spaces, where prices for a four-bedroom house range from around £555,000 to £833,000."The Chinese government is adamant that Shanghai will be one of the major players in the international business world," says David Cunningham, MD of Shanghai Vision. "There is massive investment in the underground and other infrastructure, as they reach their goal for the year 2010 - the city of the 21st century. On the western side, there is the old colonial French quarter, which has French-style buildings and wide boulevards, the English quarter with its little winding streets, an area with high rises like Manhattan, and another area where there are the older traditional Chinese buildings.

"It is radically different for different people," says Alfie Spencer, an undergraduate at Cambridge, who spent his gap-year in China and was enthralled by the country."On the eastern side is Pudong, the new hi-tech financial district, which was still paddy fields in 1990. "There is talk of the bubble bursting, but in the long term, real estate values are still undervalued. But although prices are surging, property values in Shanghai are still considerably lower than other major cities - about seven times less than in London or New York. I think that prices will continue to rise in 2005 and 2006," he says.Shanghai is divided by the Huangpu river and is an extraordinary place to live. Since 2001, property prices have been increasing - by 15 percent in 2002, around 22 per cent in 2003 and up to 25 per cent in some areas in 2004."There has been very, very hot interest in China with most investors looking at key coastal cities - Beijing and Shanghai," says Albert Lau, the managing director of Savills' Shanghai office. Adrian Van Klaveren, deputy director of BBC News, says: "China is changing fast and opening up, so this week of special output gives us a chance to reflect on what's happening and what it means for the world." From a property point of view, China was opened up to western investors when it joined the World Trade Organisation in September 2001. Since then, foreigners have been allowed to buy property in the country and, with economic regulations relaxed, it is relatively simple for Westerners to own a property, obtain a mortgage, and receive rental yields and capital gains.Shanghai, on the east coast of China, is the fastest growing city in the world with a buoyant property market.

Tomorrow at 10.35pm on BBC 1, Question Time will be broadcast live from Shanghai as part of the BBC's China week, which runs from 7 to 13 March. There would be room for each to have a private garden and off-street parking.Contact: Fulfords, 0870 2414343.FACT FILE: HOW TO BE A FIRST-TIME BIDDERAuctions are advertised in local property papers, in agents' windows and on websites like . The Royal Institution of Chartered Surveyors says newcomers should follow these guidelines:* Order a copy of the auction catalogue from the auctioneers and visit a property you may be interested in. If you bid successfully you must pay 10 per cent immediately and the rest by the time you complete within 28 days, which is why you are advised to have a solicitor already in place.If you would like House Hunter's help, write to: The Independent, 191 Marsh Wall, London E14 9RS, 020-7005-2000 or e-mail: househunter independent.co.uk. The auctioneer will arrange a time.* Instruct a surveyor to conduct a survey and a solicitor to carry out local government searches - although several auctioneers and sellers do this in advance now, to avoid wasteful duplication by rival bidders.* Use the survey and your own plans to judge the upper limit that you are prepared to bid for the property, taking into account stamp duty and how much you may have to pay to renovate. Check if the seller has set a reserve price below which he will not sell.* Line up your mortgage arrangements if you need them - many lenders are happy to fund auction purchases if the survey is found to be acceptable.* Check what sort of payment the auctioneer will accept.