Shanghai luxury homes shrink; prices stay high

A big trend toward small things is well under way in Shanghai's luxury real estate market.

The metropolis' stratospheric housing prices are forcing developers to downsize high-end properties to make them affordable.

"Shanghai's luxury real estate market today is replicating the story of Hong Kong," said the Shanghai office of Hong Kong-listed China Overseas Land and Investment Ltd. "Buyers are accepting the idea that luxury homes could go with a floor space of 100 square meters, a frustrating reality that Hong Kong people have long lived with."