Hong Kong buyers are showing renewed interest in London following a surge in the British capital's property prices last year. They are flying to the city to make a deal before prices soar even higher.
Central London's plushest homes surged 25 per cent in value last year, propelled by the city's financiers and stockbrokers spending their record-breaking bonuses on property, according to property consultancy Savills, which expects them to spend GBP5.5billion (HK$82.5billion) on luxury homes this year, pushing values up another 15 per cent.
Buying agent Cliff Gardiner, whose company The Buying Solution acts on behalf of purchasers, says Hongkongers are arriving in London to purchase houses before prices get out of reach.
'I have had a lot of people come to me over the past six months who have wanted to get a bit of the action,' he says. 'They are thinking that in three to four years' time, they may need something for their kids to live in while they study here.'
These buyers are in good company. Entrepreneur David Tang owns a house in London's West End, Victor Hwang owns a house in Mayfair and Sammy Lee's company MDP has built The Knightsbridge, an ultra-chic apartment block, a short stroll from Harrods. The building sports one of the world's most expensive apartments - a GBP20million penthouse.
Tom Tangney, associate at property consultancy Knight Frank, says most Hong Kong buyers are businessmen and professionals. Most buy for investment, and some to accommodate their children attending university in London.
Kensington is a favourite spot for Hong Kong buyers. Many have homes at the Kensington Green development which was built in the 1990s. Prices in the borough average GBP1,000 per sqft, and rental returns average 4.5 per cent gross, Mr Tangney says.