Property buyers and investors from mainland China are in a “frantic” rush to join those from Singapore and Hong Kong by increasing their focus on United Kingdom property.
Prime central London estate agency, W.A.Ellis, has conducted research in conjunction with independent property intelligence company, Dataloft, to analyse this recent phenomenon.
The key factors driving Chinese investment in prime central London include the liberalisation of China’s currency, improved trade relations between China and the U.K., rising price of new homes in China’s first tier cities, a growth in number of Chinese high net worth individuals seeking offshore investments, and an increasing number of Chinese children being educated in the U.K.
Key stats and facts from the report include the fact that £3.5 billion is estimated to have been spent on U.K. property during 2013 by Chinese investors The current strength of the Chinese currency also means that the cost of buying property assets in central London is 8 percent cheaper than it was six years ago.
Lucy Morton, senior partner and head of lettings at Prime Central London estate agency, W.A.Ellis, has recently returned from a trip to Hong Kong.
She said: “There’s a real confidence in the London real estate market. Investors seem ‘frantic’ to buy. The liberalisation of the currency has helped immensely and has, in part, been responsible for broadening the profile of buyers. Twenty years ago, buying property in London was confined to the super rich; today there are high net worth individuals – in large numbers – looking to invest in the capital.
“Exhibitions are a popular way to buy. People queue to get into an exhibition, having researched the area in which they want to buy, the schemes and often the developer they’ll be buying from. They’ll have their deposits ready and invariably leave having made a purchase. Southeast Asian investors have traditionally bought in new developments in the core areas of prime central London, typically a one- or two-bedroom apartment in a new build scheme. Many buy just one apartment, but some high net worth families can, and often do, spend millions.
“At the moment, buyers are increasingly investing south of the river where developments stretching from Vauxhall to Battersea are being snapped up. There is so much supply coming to the market here that I would caution buyers to take this into account when they purchase.”
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
Recent stories you may have missed:
HDB moves to ‘prevent foreigner enclaves’ in Singapore
Fewer ‘foreign first’ London property sales in Singapore
Man arrested for alleged rental scam
‘Perfect storm’ caused plunge in December private new home sales