The UK property market particularly London is still a highly desired area for overseas investors and this doesn’t appear to be slowing anytime soon.
The influence of the overseas investor coupled with a weak pound is allowing for a very healthy sales market in the City’s Capital. Sales of homes in London’s most exclusive areas to Chinese buyers have risen since the UK voted to leave the EU. With the British currency at a 30 year low and the Chinese housing market at a 25 year high its inevitable Asian investors will look here to invest. Include the fact buyers are influenced by our history and our institutions such as our monarchy, police force and courts this is helping the surge of Chinese money to our market.
The aftermath of Brexit left economic uncertainty in the UK but Chinese buyers see the British currency and property market as having long term stability. The recent transactions account for the most activity recorded from international buyers and one particular market in recent years. In September 2016 a record number of enquiries from Chinese buyers were recorded and demand from buyers from Mainland China is now being equalled with demand from buyers from Hong Kong. New builds always prove popular with overseas investors and at Metro Village we are instructed on a number of new build developments in different areas which will satisfy the overseas investor’s needs.
A recent survey carried out by the Hurun Institute on Chinese people with assets of over $1.50m resulted in the conclusion that 60% planned to buy property overseas in next three years proving that the depreciation of the pound will not affect the long-term value of overseas investment and any plans to invest. With a 40% rise in property prices in Shanghai over the last year and restrictions being placed on the amount of properties that can be purchased those with savings and the super rich are looking at where else they can invest and overseas is in their opinion the best option.
It’s not just residential property investors are putting their money into. On the commercial side of the spectrum recent statistics showed that investors from Mainland China and Hong Kong accounted for 96% of January transactions in London’s west end once more proving the pull of the UK is huge to overseas investors and companies alike. Lee Kum Kee are the latest Chinese brand (soy sauce) who have purchased office space in London buying in the heart of Docklands. Companies purchasing space in east London is only going to gain momentum with the Asian Business Park which is currently being built in E16. With funding granted work has started, a project which will take 10 years to complete but once finished will see commercial units for businesses along with residential units. Adjacent to City airport the redeveloped space will be a new business hub for London attracting overseas and domestic companies. Metro Village is excited about the prospect of introducing new businesses to east London. It’s fantastic to see the plans the ABP have for the local area; the construction will put this location on the worldwide map and open it up to a whole range of businesses.
Metro Village have access to a number of new homes across London, contact us today to find out more. Metro Village will be hosting several investor shows across the year where you can find more information on great areas to invest in, property market updates and how we can help you invest. Contact us today to find out how you can be part of these events.