By Jin Jing (China Daily)
Updated: 2008-02-01 11:23

From a sub-sector perspective, Colliers said Grade A offices and serviced apartments will still be the prime destination of foreign investment and will continue to suck in foreign capital.

As the limited supply of properties in the central business district will continue, investors are expected to shift focus to some emerging areas, such as North Bund, Zhuyuan, Wujiaochang and Changfeng Park.

Logistics projects will be the investment focus in the industrial property market, and mergers and acquisitions of budget hotels will continue, according to Colliers.

Jones Lang LaSalle said foreign investors are more willing to join forces with local developers for projects instead of asset acquisition en bloc.

"Joint developing is more likely to gain government support, and Chinese companies can make full use of their advantages in the residential sector," said Ho.

Savills said foreign real estate investor sentiment has been further dampened by the credit tightening from banks overseas, which will have a negative impact on their cash flow for further investment.

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