International buyers have been key players in the London residential market, according to a recent report by Savills Research.
“The amount of international equity flowing into prime London’s newly built market continues to increase, with UK buyers a minority,” it noted.
Savills said that a higher number of international buyers were engaged in the new build sector rather than the second-hand market, reflecting London’s dynamics as having more in common with Singapore and Hong Kong real estate than the UK market.
The Chinese and Pacific Asians dominated the new build sector, particularly in the East of City (Docklands) markets, indicating concentrated marketing efforts towards these regions.
“The more central the market and the more expensive the property, the more likely it is to be purchased by an overseas buyer or foreign national. The wealthiest markets are dominated by the greatest range of nationalities,” noted Savills.
The Chinese and Asia Pacific purchasers, being the most active among foreign buyers, accounted for 26 percent of the new build market.
“They dominate the apartment market, but at lower price points than most other overseas buyers. Asians tend to be more investment orientated and benefit from weak sterling. The exchange rate has made prices look even cheaper to them since 2008,” the report added.
Savills said that purchasers’ decision-making processes in terms of product type and location are influenced by their residential investment experiences back in their home markets.
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