This painting is from Chinese artist Wu Guanzhong, a master of Chinese contemporary painting.
Starting with large, full-sized houses at the bottom of the painting, the cluster of the houses gradually become smaller, which creates a sense of space. And also, the location of the houses are formed beside the water, creating a semi-circle shape from the right bottom part to the right top part. This looping order creates a pathway to lead the audience into the painting, hence creates an immensing feeling. This is also the visual path and direction into the painting.
It is very clear to see that the sense of space is not created by the tonal design, but more by the layout and the pattern. The idea of using overlapping pattern to create space is also used in this painting, the roof are pointing to different directions to generate dynamics feeling for the painting, hence it will not look so boring.
In terms of colours, the tonal range is relatively small, and the saturation of the colour is high, the wide use of hue is to create energy for the painting, making the black and white based painting brighter. It is also worth to mention that those bright colours will not only appear once, if they ever exist in the painting at somewhere, there must be somewhere else with the same colour to resonate with each other. These bright hue colours work together to create a mood of light, soft and comfortable.
There is also a lot of white space in the painting, it is actually a concept in Chinese landscape painting called Liubai, which means “leave it blank”, this is also to create a soft and zen-like feeling of the painting, and also creates the purity as well.
Although there is black and white colours, but the contrast is not that high visually, this is because those bright colours soften the contrast, therefore slow down the speed of the painting.
Source: http://www.comuseum.com/product/wu-guanzhong-households-by-lake-tai/