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A drone’s view of Acton Park and Acton Central in the Ealing borough outside London’s city centre. Photo: Shutterstock.

London’s home sales gain from UK capital’s status as Hong Kong BN(O) migrants’ preferred landing spot

  • For investors, London’s outer boroughs present good investment options, where average home prices ranged between £521,284 and £564,441 in November
  • Average prices increased by between 5.8 per cent and 9.9 per cent from a year ago, Benham and Reeves said

London and the outlying boroughs of the United Kingdom’s capital remain the top destination for Hong Kong’s migrants under the British National (Overseas) visa programme, taking the lion’s share of home sales attributed to the influx in the past year.

London “is popular among Hong Kong buyers due to its abundance of family-oriented amenities,” said Marc von Grundherr, director at the property agency Benham and Reeves. It is also “home to outstanding schools, which is often the primary focus of many Hong Kong buyers relocating with young families.”

In southwest London’s Kingston upon Thames, top schools include the Marymount International School, Kingston Grammar School and The Holyfield School. In west London’s Ealing, prestigious schools include Montepelier Primary School, St Benedict’s School and St. Augustine’s Priory. Barnet in North London offers such top schools as Brampton College, Queen Elizabeth’s School, Barnet, Courtland School, and Ashmole Academy.

For investors, these three London boroughs present good investment options, where average home prices ranged between £521,284 (US$695,400) and £564,441 in November, increasing by between 5.8 per cent and 9.9 per cent from a year ago, Benham and Reeves said.

Hong Kong and mainland Chinese investors snapped up £7.69 billion of London real estate in 2019 according to the UK Office of National Statistics, making the British capital one of the most popular destinations globally for Chinese property investments.

The rental market fell, in contrast, with average housing rent dropping by 2.6 per cent to £1,597 per month last September from a year earlier, according to the latest data by Benham and Reeves.

The historic 12th century Clattern Bridge over the Hogsmill River in the quaint old town of Kingston Upon Thames in southwest London. Photo: Shutterstock

London’s flats have yielded “stable and high rental income” over the years, said former GSK senior executive David Lam, 65, who had been investing in the British capital since his 40s, recently adding a Galliard Homes apartment at Newham’s Yard to his portfolio.

“One of them is a London pied-à-terre for my family, but all the others are for investment,” Lam said. “London remains a key location for investing my money and generating income. I intend to remain in Hong Kong for the moment, but a home in London and [offshore] investments give me options should we ever decide to leave.

Influx of BN(O) visa holders adds fuel to UK’s property price boom

Hong Kong investor Peter To, 44, said he is betting on London’s allure as Europe’s financial hub, notwithstanding Britain’s exit from the European Union.

“There’s evidence of strong rental demand and never a shortage of professional tenants especially in London, Europe’s financial centre,” To said. “City centre rents have shot up ever since the easing of lockdown and travel restrictions during the pandemic with more employees returning to settle in the city than ever before.”

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