Backed by the vibrant economy and the urbanization in the Yangtze River Delta, the outlook for the real estate market in this region will be positive, said officials.
"An influx of foreign-invested companies in the Yangtze River Delta will create a large demand for properties," said Long Yongtu, the chief negotiator for China's entry into the World Trade Organization.
Currently, more than 400 Fortune 500 companies have investments in the Yangtze River Delta which includes Jiangsu and Zhejiang provinces and Shanghai.
"The concentration of industries will boost the development of urbanization which will then enlarge the potential of the real estate sector," Long said at a seminar during the 6th China (Shanghai) International Real Estate & Archi-tech Fair yesterday.
The average housing price in Suzhou, a city in neighboring Jiangsu Province, rose 29.7 percent to 3,267 yuan (US$393.6) in the first 10 months of this year from a year earlier, according to the Suzhou Statistics Bureau.
Meanwhile, foreign direct investment worth US$1.3 billion yuan poured into the city in October, a year-on-year rise of 126.2 percent, said the bureau.
Land developers have also jumped into the booming property market. Developers including Vanke Real Estate Co, China's largest listed land developer, and Shanghai Greenland Group have shifted their business focus to the cities in the Yangtze River Delta which houses 6 percent of the country's 1.3 billion population.
Vanke plans to generate 40 to 50 percent of its revenue from the delta this year, while Greenland plans to invest 23.7 billion yuan in Kunshan and 2.5 billion yuan in Nanjing, Jiangsu Province.
Edward Cheung, general manager of DTZ Debenham Tie Leung, said in an earlier interview that cooperation is important for infrastructure and property development in the regional cities.
"The cities should work out an integrated development policy to achieve the largest growth potential," Cheung said.
"While the secondary cities like Shaoxing and Changzhou are catching up economically, the small cities have opportunities in developing distinctive products."
Residential projects will be major focus in the cities' property development, Cheung noted.
Economic growth in the Yangtze River Delta topped nationwide last year with Suzhou posting an 18 percent rise.