The number of nationalities buying property in London has risen by two-thirds since 2008. The pound's weakness enabled buyers from 51 nations to buy property in the British capital in June. Chinese and Vietnamese are among the new investors.
According to the Knight Frank London Residential Review, half the homebuyers in prime central London, which encompasses districts such as Kensington, Chelsea and Mayfair, are from overseas. The report says 51 nationalities bought property in these areas in June, compared with 30 in mid-2008.
Foreign buyers are making their presence felt at the most expensive end of the market. They account for 68 per cent of buyers of homes valued at GBP5 million (HK$61.95 million) or more, the report reveals.
Their strong appetite for multimillion-pound homes means they make up more than 60 per cent of buyers in Mayfair, Knightsbridge and Hampstead.
Liam Bailey, the head of residential research at Knight Frank, said investment by foreigners had helped prime London home prices rise 20 per cent over the past 12 months.
Hong Kong buyers are the most prominent in Wapping, Canary Wharf and the Hyde Park Estate, and they account for 2.3 per cent of all international buyers, the report shows.
Buyers from Russia form the biggest group at 14 per cent, while 11 per cent are from the United States.