Falling prices, dwindling transactions and property developers' discount offers may be frightening away individual buyers but seem to be attracting more international investors in the real estate sector.

International real estate service provider Jones Lang LaSalle said in a recent report that some international groups have raised substantial capital for China property funds and are now deploying the money, while others are moving capital from less vibrant markets in North America and Europe.

The squeeze on bank loans and falling property prices, in fact, provide foreign investors with a good opportunity to enter the market.