The average price paid per net acre was approximately $1.4 million. Company officials are optimistic that this sale will enable it to surpass its 2007 make-good target of $16.3 million.

"We are currently engaged in substantial discussions with potential joint venture partners for the purpose of developing the next 80 acres of Baqiao and expect to complete an agreement during the first half of 2008, with construction to commence during the calendar year and presales to begin during 2009," says Lu Pingji, chairman and CEO of China Housing.

Prices in Xi'an lag behind many areas of China. Seen as a gateway in the "Go West" movement in China, the region is undergoing extensive infrastructure development. "We firmly believe the large disparity in valuations as compared to other major metropolitan markets bodes very well for further development and price appreciation throughout Xi'an in the coming years," says Pingji. "The local government expects to invest more than $7 billion during the next 10 years for overall infrastructure development to accommodate approximately 900,000 new citizens in the Baqiao area." The projects include a city subway engineering project, which will connect Baqiao to Downtown, the airport, and the historically significant Terra Cotta Warriors site.