Easy financing and the promise of value have made Britain's capital a magnet for Asia-based buyers looking for straightforward transactions, plentiful choice and the prospect of attractive returns.
'In the past 18 years, I've never seen so many UK agents and developers launching projects in Hong Kong,' says Rosaline Lam, director of international properties for Colliers International. 'Central London properties are very popular, both with investors interested in the strong rental market and end users.'
She identifies several key factors. For the area stretching roughly from Heathrow Airport in the west to the financial district of Canary Wharf in the east, average residential rent increases are about 10 per cent a year. Low-interest mortgages are readily available for overseas buyers. The currency has been favourable for Hong Kong investors recently. And Londoners are not finding it easy to buy.
'Generally speaking, the banks will lend up to 75 per cent with repayment over 25 to 30 years, so for financially strong investors there is no problem getting loans,' Lam says. 'If average interest charged by banks is 3 per cent, a return of 4.5 to 7 per cent - depending on the location - covers the mortgage financing.'
Most Hong Kong clients go for studio, one- and two-bedroom apartments, close to financial centres or universities and with quick access to rail stations. They also favour newly built properties in relatively large developments for the lower insurance, 24-hour concierge services, leisure facilities and management fees.
Colliers have had an excellent response to promotions for Dickens Yard in Ealing, offering studios, apartments and penthouses, and for the dockside Doulton House development at Chelsea Creek, just off King's Road.
'Many investors feel now is the right time to enter the market,' Lam says. 'They see better value than in Hong Kong, without restrictions on the buying process and high stamp duty, and there's the attraction of a stable leasing market irrespective of the economy.'