With Brexit out of the way, buyers once again focus on prime London property deals
- Hong Kong-listed Far East Consortium buys Ensign House, an office building in Canary Wharf for £28.25 million
- In December there were 54 property transactions worth more than £5 million, the highest since 2014, according to Savills
The UK’s exit from the European Union is likely to lead a surge in transaction volumes as investors resume buying prime London property, but an additional 3 per cent stamp duty and higher asking prices could dent sentiment, analysts said.
In a sign that foreign buyers are indeed looking at London property prospects favourably, Hong Kong-listed Far East Consortium on Monday acquired Ensign House, a 4,572-square metre office building in Canary Wharf for £28.25 million (US$36.5 million), which will eventually make way for a mixed-use project.
“There’s a lot of Hong Kong clients that have been window-shopping,” said Chris Harvey, a partner at law firm Mayer Brown London, who met prospective clients in Hong Kong with budgets above £10 million. “They were just waiting for that little bit more of certainty.”
“All the clients that I have seen, about 90 per cent, maybe even more, have said that ‘yes, we will do a deal in the UK now’,” he added.
With Brexit finally coming through after more than three years of uncertainty, there is a renewed interest from some investors who will continue to increase their investment. For others who have never invested in the UK, they feel now is the right time to invest.
With the Conservative party winning overwhelmingly in the general election, prime central London market has quickly become a hot choice. There were 54 sales recorded in December, the highest monthly total of £5 million plus sales in the past five years, according to property consultancy Savills.