New housing policies in Shanghai, Shenzhen, and other first-tier cities have brought some calm to China's property markets. But how is the average citizen responding to the new policies?

Early this year, Mr. Peng decided he wanted to invest in a big apartment.So he sold one of two smaller apartments that he already owned. But the government implemented its new housing policy before he could settle on his new home.

The new regulations require Mr. Peng to pay a 70% down payment for a new apartment bigger than 120 square meters, instead of 40% like before. The new loan rate is 110% of the base rate. So it will now take longer to save up for a new home.But Mr. Peng is still eager to buy, while some are getting eager to sell before the market price goes down further.

Property developers have started adjusting their sales strategies to fit with the new laws.

On April 17th, property prices in Shanghai averaged 29,912 yuan -- 13% lower than March 25th. Also, the trading volume is 392 sets, only one third of the number on March 25.

The new policies are expected to cool the market down further, reduce speculative buying, and bring the property market back on a stable development path.

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