Families prefer homes near good schools

Okay, 10.5 million yuan ($1.45 million) - that's the price of a 91-square-meter basement flat in western Xicheng district, the Beijing News reported earlier this year.

If you find the price tag shocking, you need a reality check.

As a mother of a would-be elementary school student, I'd say 115,006 yuan per sq m might be a good bargain - that is, if the basement flat, like the one in Xicheng, is in the neighborhood of a prestigious school, such as the Huang Cheng Gen Primary School and Beijing No 4 High School.