Billions Pour In From China into London Property Market

Increasing numbers of wealthy Chinese nationals are investing their money into London property.

The extent of their investment has been revealed by research from prime central London estate agency W.A.Ellis and independent property intelligence company Dataloft.

The report reveals that Chinese investors last year spent £3.5billion on UK property.

This has been fuelled in part by the strength of the Chinese currency which means that the cost of buying property assets in central London is 8% cheaper than it was six years ago.

Senior partner and head of lettings at W.A.Ellis Lucy Morton said: “There’s a real confidence in the London real estate market. Investors seem ‘frantic’ to buy. The liberalisation of the RMB 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.

“South East 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.”

Scott Green, CEO of NeedAProperty.com and EastWestplc.com, commented: “In 2013, thousands of properties were sold abroad in Hong Kong and Singapore. China is already the second-largest overseas investor in London, and the third biggest in the UK as a whole. They have become essential to London’s house building industry”.

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