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Chinese eager to buy London property
By Cherry Cao |
July 24, 2010, Saturday
|
Print Edition
Print Edition
CHINESE investors have become increasingly active in the London real estate market due to the stronger yuan and falling British property prices, a major international property adviser said yesterday.
East and south Asian buyers, particularly those from the Chinese mainland and Hong Kong, are now accounting for 35 percent of sales in new developments in London, making Chinese the most active overseas investors in the city, according to Savills research.
"The recent tightening policy toward Chinese domestic property investment has led to an increased appetite for overseas real estate purchases," said Randall Hall, chief executive officer of Savills China. "The appreciation of the yuan against major currencies over the past two years also meant that Chinese buyers could acquire foreign real estate assets at a bargain."
The yuan has appreciated about 32 percent against the pound in the past two years.
In the meantime, the average cost of a British home rose 6.3 percent from a year earlier to 166,203 pounds (US$256,578) in June, Halifax, the mortgage lending division of Lloyds Banking Group Plc, said on July 8. Prices were 7.5 percent above their April 2009 trough and 17 percent below their peak of August 2007.
Savills China, which established its overseas property sales team in 2009, has been witnessing more Chinese buyers venturing into overseas markets over the past few years, primarily on expectations the sterling exchange rate will rise in the near future and business opportunities will increase with the approach of the London Olympics in 2012.
Overseas buyers of British properties also include parents who buy properties for their children seeking education there, the real estate advisor said. Upon the graduation of their children, they can not only receive rental income but also profit from the appreciation of the property.
For Chinese mainland investors, top overseas destinations for real estate investment include Britain, the United States, Australia and Hong Kong.
East and south Asian buyers, particularly those from the Chinese mainland and Hong Kong, are now accounting for 35 percent of sales in new developments in London, making Chinese the most active overseas investors in the city, according to Savills research.
"The recent tightening policy toward Chinese domestic property investment has led to an increased appetite for overseas real estate purchases," said Randall Hall, chief executive officer of Savills China. "The appreciation of the yuan against major currencies over the past two years also meant that Chinese buyers could acquire foreign real estate assets at a bargain."
The yuan has appreciated about 32 percent against the pound in the past two years.
In the meantime, the average cost of a British home rose 6.3 percent from a year earlier to 166,203 pounds (US$256,578) in June, Halifax, the mortgage lending division of Lloyds Banking Group Plc, said on July 8. Prices were 7.5 percent above their April 2009 trough and 17 percent below their peak of August 2007.
Savills China, which established its overseas property sales team in 2009, has been witnessing more Chinese buyers venturing into overseas markets over the past few years, primarily on expectations the sterling exchange rate will rise in the near future and business opportunities will increase with the approach of the London Olympics in 2012.
Overseas buyers of British properties also include parents who buy properties for their children seeking education there, the real estate advisor said. Upon the graduation of their children, they can not only receive rental income but also profit from the appreciation of the property.
For Chinese mainland investors, top overseas destinations for real estate investment include Britain, the United States, Australia and Hong Kong.
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