Britain's estate agents expect a surge in demand from Hong Kong buyers this summer. A sharp drop in the value of the sterling against the Hong Kong dollar and a fall in house prices mean the cost of buying a British property is now half of what it was in the summer of 2007, estate agents say.
While a handful of Hong Kong buyers have joined other nationalities in buying British property during a busy spring period in the market, most are waiting, expecting prices to fall further.
Ed Lewis, director at estate agency Savills, says Hong Kong exhibitions of British property received plenty of visitors during the spring, with most interest focused on London. However, many investors are holding back from making purchases.
'The correction in currency values and the correction in prices mean there is a 45 to 50 per cent change in prices compared to the same time last year,' he says. 'Expats and locals have been keeping an eye on London and are lining up for the third quarter.'
The sterling has fallen in value by about a quarter against the euro, the United States dollar and currencies pegged to the greenback, including the Dubai dirham and Hong Kong dollar, since early last year.
According to Knight Frank, property prices in central London's most desirable districts, such as Kensington and Chelsea, have fallen 24 per cent from the height of the market in late 2007 to the end of March this year.