Hi Nathan,
I'm almost certain that property in China and Shanghai especially are vastly overpriced and in a bubble. The amount of bad loans that the public banks have on their books is unreal, and I believe the government have recently restricted by diktat the amount of money that can be lent out on property. Also you have to consider the outlook for China in the very near future: they will probably a cycle of monetary tightening very shortly, and these two factors may contribute to the bubble in Shanghai (and other regional centers of commerce) bursting precipitately. I saw off-plan flats being hawked at a property show in London. Now that tells me two things: they can't sell them to local (Chinese) investors and they have had to come all the way to London to find buyers. So, the locals can't afford them and your only source of resale would be another foreign investor.
Thank you
Nelson