Troubling times fail to deter Hong Kong buyers from entering London’s real estate sector
British capital remains a strong draw for Asian investors because of its fair taxes, the strong demand for rental accommodation, and good opportunities for sustainable capital growth over time
Despite the rancour generated in the lead-up to Thursday’s referendum, along with surging property prices and increasing stamp duties, London’s real estate sector continues to draw Hongkongers.
Analysts and property agents say that the economic Armageddon scenario painted by the Remain campaign in the run-up to Thursday’s referendum – which the Leave campaign won – had not deterred property buyers.
Koh Keng-shing, chief executive and founder of Landscope-Christie’s, says that he expects to see a gradual increase in sales of London property, as plenty of pent-up demand has been building up over the past few months – despite the negative news that has been emerging from Britain, such as the stamp duty surcharge.
British chancellor George Osborne in his annual budget in March imposed a 3 per cent stamp duty surcharge on buy-to-let and second homes for overseas investors from April 1 this year.
The so-called “second homes tax” means anyone who buys more of the city’s property will need to stump up more cash upfront.
However, some analysts say this extra stamp duty seems to have had little impact on Hong Kong property investors for residences in London, especially high-rise apartment buildings in areas with convenient transport networks.