SHANGHAI is the No. 2 city in the Asia-Pacific for property investment and third for real estate development in 2011, said a joint industry survey.

By investment prospects, the city follows Singapore and is trailed by Mumbai, Hong Kong and New Delhi, according to a joint report released yesterday by the Urban Land Institute and PricewaterhouseCoopers LLP.

Mumbai, New Delhi, Singapore and Melbourne take the rest of the top five spots for development opportunities, the survey showed.

"While increases in property prices may have curbed some investor interest, Shanghai continues to hold strong appeal," said Steven Blank, senior fellow of real estate finance at ULI, a global non-profit education and research institute. "Overall, the high-priced city is still viewed as being on the steps of a recovery and should remain a target on many investors' radar."

Among all real estate types for investment in Shanghai, the majority of the respondents preferred retail properties, followed by industrial/distribution spaces and office buildings, according to the report, which is based on opinions from more than 280 real estate professionals, including investors, developers, property company representatives, lenders, brokers and consultants.

Shanghai ranked No. 1 for both real estate investment and development opportunities this year, boosted by the government's decision to inject funds into the economy.