Shanghais booming property market is to become more accessible to foreign investors as China plans to place restrictions on property loans and introduce public land tenders, as a measure to cool the countrys economy.

A reduction in funding is expected to force small local developers out of the market, as they will not be able to afford the expenses needed to complete unfinished projects. Instead only the larger firms that are well capitalised will be able to afford to undertake such projects. "This is exactly what we want to see as a foreign developer", said Richard David, chief executive officer of First China Property Group, Chinas first non-Asian investor to secure a site in Shanghai back in September 2003.

"We now feel that we can compete head to head with local developers in a transparent market", he added. First China Property now plan to develop US$400 million of projects in Shanghai and other centres in China over the next five years.