(Yicai) Feb. 24 -- Recent investments by Singaporean property developers in Shanghai may be a sign that foreign investors will soon return to China’s real estate market, according to Jingjian Consulting founder Zhang Hongwei.

As the recovery in China’s property market becomes clearer, big overseas investments will return, Zhang told Yicai after consortiums led by two Singaporean builders bought two of the four plots sold in Shanghai's first land auction of the year on Feb. 20.

Kheng Leong joined with China’s Jinmao Holdings Group to secure the rights to develop a plot in Hongkou district for nearly CNY9 billion (USD1.2 billion), or CNY117,500 (USD16,230) per square meter, representing a 38 percent premium, while Frasers Property and its Chinese partners bought a plot in Songjiang district for CNY810 million (USD111.9 million), or CNY26,100 (USD3,610) per sqm, at a 14 percent premium.

About three months ago, Hong Leong Group and its Chinese partners acquired the rights to build high-end commercial buildings and residences on two parcels of land in Shanghai’s Xintiandi neighborhood for around CNY9 billion.

In China, Singaporean developers and capital have consistently focused on major cities and maintained strong financial health, Zhang noted, so as the signs of recovery emerged in core urban markets, these forward-thinking builders promptly began acquiring assets.

Core land plots in China’s first- and second-tier cities are high quality, making now a great time to invest, Zhang said. “Taking the Hongkou plot acquired by Kheng Leong and Jinmao as an example, they will only need to build high-quality products because of the plot’s prime location,” he said. "Selling them will not be a problem.”

In the past year, Singaporean companies have invested not only in the land market, but also in big real estate projects such as hotels and shopping malls.

For example, Singapore’s sovereign wealth fund GIC acquired 48 percent of Nanxiang In City and Songjiang In City from struggling builder China Vanke to raise its stake in the two suburban shopping malls to 98 percent. Singaporean industrial giant Royal Golden Eagle Group purchased the Wanda Reign On The Bund Hotel Shanghai.

Editors: Tang Shihua, Futura Costaglione