While many developers are troubled by the new policy that increases the portion of smaller properties, Dongdu International Group and Vanke are taking advantage of the situation and changing lifestyle, launching campaigns, new designs as well as products to target the young generation. With the new government policy and rising property demand from young people, it is believed that developers will give a greater focus on developing smaller homes to meet their needs.   According to new state regulations announced in June 2006, 70% of newly started projects in the city should have a floor space of no more than 90 square meters, moving more properties from the luxury category to affordable. Most developers are driven to change their initial designs for their real estate projects.   Recently, Dongdu International Group has joined hands with Tongji University to research, development, plan and design smaller homes for young people.   Since the enforcement of the new policy, some listed real estate developers including Vanke started to turn their eyes from luxury properties to begin research on developing smaller homes or professional marketing efforts to target younger buyers. Following three such projects, Dongdu launches Jiangning International Youth City in Nanjing that will go on sale in May 2007. Vanke also launches real estate project in Shanghai that features small homes for young people.   The Director of Dongdu International Group Li Hailin comments that under the new government regulations, real estate firms have to attach greater importance to diversifying their businesses professionally and the youth market is the segment with the greatest potential and buying power. They now have higher standards and requirements towards accommodation. However, traditionally, there have been a limited number of real estate developers paying attention to this market segment.   The Secretary of Shanghai Federation of Industry and Commerce’s residential industry committee, Shen Keqiao says that real estate market has undergone some fundamental changes. Profitability needs to be cultivated with making accurate adjustments and product positioning to corporate strategies according to market trends. Youth housing, similar to elderly housing, would be the new direction for real estate development. According to the statistics of Shanghai Civil Affairs Bureau, there will be 150,000 newly-wed couples in 2006, which will generate demand for specific housing that can fulfill their needs and demands.   However, the concept of youth housing is not equal to a small home mixed with features popular with young people. Professor Huang Yiyu with the architecture department of Tongji University says that past research shows specific demands from young property buyers in terms of unique apartment architecture planning, community facilities as well as other attractions. Developers need to insert more humanitarian designs into their young housing projects that are characterized by smaller apartment size and lower prices. Economic Informtion Daily