With the Olympics coming to Beijing in 2008, New World Development expects to see an increasing demand for luxury residential properties in the city.
Peter Man Man-wai, sales and marketing director of New World's marketing arm, Kiu Lok Property Services (China), said Beijing's property development in the next few years would be accelerated because of the Olympics.
'The 2008 Beijing Olympic Games is very encouraging to investors in the city's property prospects. Many of them expect a significant increase in demand for the top-end residential property as overseas corporations move to the capital city.'
Many overseas corporations are also expected to continue their expansion in Beijing or other major cities following the country's imminent entry into the World Trade Organisation this year, spurring its property growth.
'Surely there will be fierce competition in the top end market in the future. Many local and foreign developers are targeting the sector due to its increasing demand,' Mr Man said.
He added some of the quality developments could command yields between 12 per cent and 14 per cent.