Global investors, particularly from mainland China and Hong Kong, are snapping up London office properties in anticipation the economy will make a swift recovery as the government rolls out a speedy Covid-19 vaccination programme. Chinese buyers picked up US$2.12 billion worth of UK commercial property in 2020, about a third of the US$6.8 billion they spent in the rest of the world, according to Real Capital Analytics, which tracks transactions worth at least US$10 million each. The UK has been Hong Kong investors’ most-favoured destination for seven of the past 10 years, it said. The latest deal has reinforced the view that better returns can be found away from troubles at home. A consortium led by Wing Tai Properties agreed last week to buy an 11-storey building formerly known as Athene Place for an estimated £255 million (US$356 million), adding to several deals signed by Hong Kong-based investors late last year. “London is still seen as a safe haven and is the first choice for Hong Kong-based investors looking to diversify their assets out of Asia,” said Chris Harvey, a partner at law firm Mayer Brown London. “The UK has now drawn a line under Brexit and is actually dealing with vaccine roll-out better than the rest of Europe.” Hong Kong’s economy is struggling to emerge from its deepest recession, with the office market hollowing out as global banks gave up spaces and other tenants moved to mainland locations to get closer to their customers. China’s market, while improving, remains a tricky place because of policy tightening risks, according to analysts. The UK government had administered about 33 doses per 100 people as of March 6, according to data compiled by Oxford University , well ahead of the ratios of 26.5 in the US and 8.7 in the EU. Israel and the United Arab Emirates led the race with almost 100 and 63.3, respectively. “There is a feeling that the UK will therefore bounce back quickly once the pandemic is over,” said Harvey. The London market now looks good value in Europe, as yields are superior to cities such as Paris and Frankfurt, he added. Mayer Brown provided legal advice to Hong Kong-listed Lifestyle International when the retail operator purchased BP’s London headquarters in November for £250 million. It also advised closely-held K & K Property when the Hong Kong group bought a pair of London buildings in the West End for £180 million. Although pricing of prime office space in London has been resilient, there are other opportunities for investors, according to James Horgan, head of commercial at Property Vision, which advises private clients and family trusts looking to own or rent property in the UK. “Buildings which are in tired condition have seen reductions in pricing, with some examples of Soho offices that might have sold for £1,200 per square foot a year ago [are] now achieving £800,” he said. “This can create an opportunity to reposition offices for other needs.” In Hong Kong’s Central business district, prime office space rents had fallen by only 12.4 per cent in January from a year ago and were unchanged from December, according to Knight Frank. Vacancy rate stood at 7.3 per cent in December, a 16-year high, according to property consultancy JLL. “Pricing shifts as a result of Brexit and impact from Covid-19 have also provided attractive entry points for some global investors taking a long-term view,” said Harry Tan, head of research for Asia-Pacific at Nuveen Real Estate. London’s office market benefits from the city’s position as a top financial hub, he added, while Hong Kong’s market has not corrected far enough despite a recession.