Servicing a need for comfortable accommodation (3)

"Although our agency targets expats living in China, we are finding more senior Chinese professionals are interested in high-end residences nowadays," said Wang Yiyi, who works for a Shanghai-based property agent specializing in hunting for homes for foreigners. She added that more than 30 percent of her company's customers are now Chinese.

Frasers Hospitality has just completed extensive refurbishment of Fraser Residence, located in the heart of Shanghai's Huangpu district. The 324-unit project is located close to Shanghai's landmark high-end mall Xintiandi.

A recent report by Savills said demand for serviced apartments will continue to grow as international companies expand their businesses in China and wealthy Chinese businesspeople become increasingly mobile and look to enjoy a more comfortable existence while on the road.

Although the market has largely been dominated by first-tier cities, increasing interest - especially for short-term rentals - is being seen in second-tier markets.

Ascott, another world leading owner and operator of serviced residences, also announced in 2012 that it plans to maintain rapid growth in China by adding eight to 10 new blocks of serviced apartments every year over the next three to five years.