STRONG investment is expected in non-residential properties in Shanghai over the next three years, with rent and sale prices seen to increase steadily, a major international real estate services provider predicted yesterday.

An overall strong sentiment this year among investors as well as rising rents amid limited supply should encourage many owners to hold their properties in the short to mid-term, according to the Shanghai Property Market Annual Review and Outlook for 2011 and 2012 released by Colliers International yesterday.

Colliers data showed the city saw investment transactions totaling 35.4 billion yuan (US$5.62 billion) in 2011.

With government austerity measures to curb housing speculation still in place, the residential market was the least active among all property sectors, taking only 3 percent of the city's total investment value last year. The market for mixed-use and office developments was the most popular among investors, taking 75 percent of the total value.

Chinese mainland investors were the most active last year, taking up 44 percent of the total investments, followed by Hong Kong and Taiwan investors at a combined 20 percent