Why buyers from China and Hong Kong continue investing in UK Property – despite Brexit

 

Whilst investment interest from other foreign buyers has seemingly dropped after the country’s decision to leave the EU, Hong Kong and China are standing strong, ready to invest when the right opportunity hits.

Peter MacColl of Knight Frank pointed out the increase of Chinese money into the UK property market and said that the money was coming in from different types of investors: state-owned enterprises, corporations and ultra-wealthy individuals.

https://www.buyassociation.co.uk/2017/01/03/british-expats-buying-london-south-east/

This rise in investment from China is part of a bigger financial outflow from Asia. Forecasts suggest the national currency to decline in the near future in addition to the Chinese Government possibly introducing stronger controls on capital in the future.

One highly regarded international location for investment was London during the post-referendum fall in the value of the pound, which made it cheaper to buy properties. “Four or five per cent, which is now the net yield in the City on prime buildings, is a very acceptable level of return compared to what they can get elsewhere,” MacColl added.

Chris Brett, head of international capital at CBRE, also mentioned that investment into London property coming from Hong Kong buyers was on par with China.

https://www.buyassociation.co.uk/2016/12/13/meet-five-london-homes-asking-prices-tumbled-20/

“At the moment, there is about £4.5bn [$5.51bn] of live equity targeting London from Hong Kong investors…It’s the most activity we see from any international buyers,” Brett said according to the Financial Times.

Whilst companies in Hong Kong aren’t subject to China’s capital controls, experts say they are also aiming to diversify their portfolio in fears of a destabilisation of China’s market.

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800

ba-

Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator

.

Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.

Login

Not a member? Sign up for free

Why buyers from China and Hong Kong continue investing in UK Property – despite Brexit

Why buyers from China and Hong Kong continue investing in UK Property – despite Brexit

Example

By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.