A new report has revealed why many property investors based in China are looking towards bricks and mortar in the UK.
Published by London agency W.A Ellis, the research states that the liberalisation of China’s currency, the renminbi (RMB), is just one of the reasons why buyers are investing in the country.
Chinese investors spent an estimated £3.5 billion on UK property during 2013, spurred on by the strength of the renminbi. Property assets in central London are now around eight per cent cheaper than they were six years ago, providing huge benefits for individuals from the Far East.
Another reason for such interest in UK property from Chinese buyers is the quality of education on offer in the country. As reported by Property Wire, a recent report from Chinese magazine Hurun found that 85 per cent of high net worth individuals were planning on sending their children abroad to learn, with the UK named as the preferred choice for 22 per cent of these.
Furthermore, the increasing cost of properties in China’s first tier cities is driving away customers to look elsewhere for investment opportunities.
London, of course, is one of the business capitals of the world. People from all over the globe want to have a base in the city and will invest in quality commercial developments to do so. This trend will also lead to more residential properties being snapped up in the area, either as a primary home or second property.
This increase in business is also being attributed to the improving trade relations between the UK and China, meaning that more Far East companies are looking towards the country to achieve growth.
According to Lucy Morton, senior partner and head of lettings at W.A Ellis, the choice in residential property investment is typically in prime central London, with one- or two-bedroom apartments particularly popular. However, high net worth families are also known to spend millions on their chosen property.