Luo Guangzhai, director of the project, told reporters after a foundation laying ceremony, "The construction progress is exactly as we planned."

"The 10 billion yuan budget is not final, there will be more construction to come," Luo said, adding that some 8,000 units have been put on the market for post-Games sale.

He said final inspection on the project will be in April next year and they will be ready for use after June.

High-rise buildings are mostly under construction in the site that used to be fields. It takes about 45 minutes to commute from the city center Guangzhou when traffic is smooth.

During the Asian Games, most athletes, media, organizing crew and support personnel will live in the village, which also features a lake, a sport stadium, a media center, a small hospital and a light rail station connecting to the city center.

The Games, to start Nov. 12, 2010 and run through Nov. 27, are expected to draw 10,000 athletes from 45 member-states to compete in 42 games, including 28 Olympic sports and newly added cricket, dragon boat racing, dancing, roller sports and Chinese chess Xiangqi and Weiqi.

Japan dominated the quadrennial games since the first event held in but China took the lead in 1982. It took 165 gold medals in the last Games in Doha, with South Korea and Japan following with 58 and 50 gold.

"The 21st century is Asian era," said Shin Yong Suk, vice president of the Olympic Council of Asia which oversees the Games. "The Asian Games are important even for the harmony of Asian people and countries. The world will realize the rising Asia."