London overtakes Hong Kong as world’s busiest super prime property market as French, Hongkongers fuel purchases

London recorded a 3 per cent increase to US$3.75 billion worth of deals in 2020, toppling Hong Kong as the busiest market for luxury homes

French and Hongkongers contributed 23 per cent of the purchases in London while mainland Chinese and Americans also chipped in

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London unseated Hong Kong as the top market for super-prime property in terms of transaction value. Photo: Shutterstock Images

Published: 4:31pm, 14 Apr 2021Updated: 5:04pm, 14 Apr 2021

London unseated Hong Kong as the top market for super-prime property in terms of transaction value, as foreign buyers including French and Hongkongers helped lift the market despite pandemic and Brexit concerns.

The British capital recorded US$3.75 billion of sales from 201 transactions, according to property consultancy Knight Frank, which defines “super-prime” as homes worth US$10 million and above. London snatched the crown from Hong Kong, which had 169 deals totalling US$3.2 billion.

UK home prices saw a rebound in annual growth at the start of 2020 before the Covid-19 pandemic struck, halting a recovery from four years of slowdown, according to the National Statistics Office. Prices have also gained, reflecting pent-up demand, changes in housing preferences due to Covid-19, and changes in property taxes, among others, it added.

“London’s super-prime residential market shrugged off Brexit and even looked through the pandemic – confirming the UK capital as the world’s leading wealth destination,” said Liam Bailey, global head of research at Knight Frank.

Hongkongers, encouraged by the UK’s offer of a citizenship path for British National (Overseas) passport holders, may have had a hand in helping London to the top spot. It posted a 3 per cent increase in transaction value in 2020. Hong Kong, which outranked New York and Los Angeles in 2019, saw a 31 per cent slump in 2020.

The British government last week launched a £43 million (HK$460 million, US$59 million) package to support BN (O) holders and their families that settle in the country, funding local councils nationwide to help with housing, education and employment.