The property investment arm of Morgan Stanley is in final talks to sell a Chinese apartment complex to a unit of Singapore's Keppel Land, sources close to the deal said on Tuesday, reported Bloomberg.

The deal comes as some foreign investors are keen to tap the booming Chinese property market, which has seen residential prices rise as much as a third last year in first-tier cities such as Beijing and Shanghai.

"In the long term, this is a pretty good investment for any foreign investor," said Clement Luk, CEO of Eastern and Northeast China at Centaline Properties. "But in the short term, rental yields will be quite low because residential prices in Shanghai have risen far too quickly."

The overall value of the luxury apartment property is estimated at about 900 million yuan ($130 million) and Morgan Stanley has owned it for about five years, the sources and local media said.

However, they would not disclose the total value of the sale of the complex, which is controlled by Morgan Stanley and partly owned by a local partner.

Alpha Investment Partners, a unit of Singapore's third-ranked developer Keppel Land, was in exclusive negotiations with Morgan Stanley Real Estate Asia to purchase the Jinlin Tiandi complex in downtown Shanghai, they said.

Local media said the complex included apartments with a total floor space of around 19,000 square m