UK property sales to Hongkongers in London and other cities set to spike amid weaker pound, influx of migrating buyers
- The pound is near a two-year low, and observers expect it to depreciate further, playing into the hands of Hong Kong buyers despite rising interest rates
- A 5 per cent decline in the value of the pound against the dollar tends to drive a 10 per cent uplift in inquiries, according to one agent
Hongkongers are likely to purchase “significantly” more homes in the UK over the coming months as a weaker pound brings more properties in London and other British cities into their price range, according to analysts.
The pound just hit a near two-year low against the US dollar, and observers expect it to depreciate further amid a forecast slowing of the UK economy, playing into the hands of Hong Kong buyers despite rising interest rates.
“The pound sterling has hit a new low against the dollar, and is currently at its lowest level since the start of July 2020,” said Nina Coulter, UK board director and director of residential development sales at Savills. “This significant drop in the value of the pound makes homes in the UK more attractive to buyers from Hong Kong.”
The uptick in demand from Hong Kong buyers is likely to be pronounced, she added. “Whenever there is a 5 per cent or more downward shift in the value of the pound against the dollar, we tend to see a 10 per cent or more uplift in inquiries from Hong Kong buyers for homes in London, and the level of deals rises significantly,” Coulter said.
