China’s real estate market recovery will be driven by domestic demand and isn’t in a 'bubble,' according to CapitaLand a Singapore developer whose China operations were its only profitable unit last quarter.

Most buyers for their residential projects are home buyers, Liew Mun Leong, chief executive officer at the Singapore-based developer said in an interview yesterday. 'I have not seen excessive investment in the real estate sector so far,' he said.

'Prices have gone up beyond 2008, 2007, but are still lower than pre-Asian crisis so there is still room to creep up.'