Tomorrow marks the first day of the Chinese New Year, ringing in the Year of the Rat for 2020. Will it live up to its association with wealth and surplus?
While much of the Western world is almost a month into the new year, China and other countries are set to bring in the Chinese New year this weekend. The year ahead will be the Year of the Rat, representing the dawn of a new day, while the creatures are commonly associated with wealth and surplus in Chinese culture.
The year ahead: time to invest
Along this theme, the year ahead for Chinese property investors looking at the UK is set to be a positive one. Despite Brexit worries which have concerned some foreign investors, interest from China in the UK property market has continued to climb over recent years, in London as well as other major cities such as Manchester, Liverpool, Leeds, Bristol and Birmingham.
Now that the country is being firmly led by a majority government, whatever the outcome, the increased certainty has caused a peak in interest from Chinese investors, according to Nick Whitten, director of residential research at Jones Lang LaSalle.
“Chinese and Hong Kong buyers are not waiting any more, they are starting to invest now that they can see a clearer Brexit resolution is coming,” he commented.
He believes that London will continue to be the main target for Chinese property investors since the election result, as pent up demand from these buyers as well as those from Singapore, Malaysia and the Middle East.
The perks of UK property investment
As the pound has remained low against the US dollar since the EU referendum, snapping up UK property is cheaper than ever for overseas buyers – led by those from China and Hong Kong. Even as stability resurfaces, this trend appears to be continuing for now, making it an ideal time to do big deals in the country.
House prices over the past year have been slow to climb, but the latest research shows a turnaround, and many experts are predicting a much more positive 2020 overall. This, along with the touted stamp duty changes to be brought in by the government, makes now an ideal time to invest and take advantage before any major price hikes take effect.
While London has suffered the biggest blows as a result of Brexit, the north of England – particularly the north-west – and the Midlands have been relatively unaffected, and Savills expects these areas to drastically outperform London and the south-east.
So it seems the year ahead, the Year of the Rat, could hold the promise of wealth and surplus for savvy property investors.
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