Real estate industry is a new economic growth point and main industry in Chinese gross domestic product nowadays. This paper analyzes the trend of Chinese real estate market development to help investors to understand the current situation of Chinese real estate markets and policies better, so as to make better real estate investment decisions in China in the future. Because of oversaturated with investment and higher cost of investment there are more and more limitations in investing in big cities in China. With the rapid development of the economy, the huge inner demand of real estate is increasing in medium and small sized cities. Some investigations show that there are huge spaces of the appreciation in Chinese real estate market in medium and small sized cities. The author will describe and analyze the investment strategy and development of Fuxing Huiyu Real Estate Corporation as a case study. The demonstrated company is a public company with rapid growth in a medium sized city named Wuhan in the central part of China. Other investment companies or real estate companies could get some ideas by analyzing the development and decision making process of this company.