Chinese investors continue to turn to London for property | 19 February 2013
With the Chinese government loosening rules on offshore investment, it is likely that London will see a boost in investment from investors in China.
Reported by londonlovesbusiness.com, property firm Savills believes London could see up to £10 billion of new investment in the capital as a result of the move from the Chinese government.
It also backs up trends cited by Savills from last July which highlighted a growing trend among Chinese buyers for commercial and prime property – so much so they had become the fourth largest net purchasing group in second-hand prime property in 2011/12, cites savills.co.uk.
Stephen Down, head of Central London investment at Savills, commented on the increase of foreign investors: “Central London has continued to appeal to a wide range of investors, particularly from overseas who are generally attracted by the highly liquid market with larger, prime properties that are let on a longer lease, with a secure income and a lower yield.
“In contrast, domestic purchasers in Central London have been focused on smaller lot size that are multi-let, which could include secondary properties, where they can implement a strategy to work the asset and then remarket,” he added.
Along with Chinese investors, the Chinese government is also keen on investing in the UK. For instance, the Chinese Investment Corporation purchased an 8.7 per cent stake in Thames Water and a 10 per cent stake in Heathrow airport last year.
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.
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