The benefits of placing bets in these second-tier cities aremany, stated Nicholas Brooke, chairman of Professional PropertyServices, in a session focused on less-familiar locales. He citedthe lighter bureaucracy, the movement of many of these cities todiversify into the service sector and the lower cost base comparedto tier-one locales.

Naturally, along with the benefits come issues that need to beresolved before foreign players sign on the dotted line, issuessuch as whether or not the city's mayor is "a leader, a champion"of development." Brooke added that many of these off-the-highwaylocales suffer from "inconsistent interpretations of laws andregulations."

But the looser approach to laws was cited by others as a plus,implying a freedom from red tape. "There is flexibility inpolicies," stated Catherine Yin, general manager of Beijing YintaiProperty Co. "But they are difficult to understand clearly. Youhave to have a local partner" to act essentially as a governmentliaison.