Concrete AnalysisUK property still a safe haven for Chinese investors

The international investment property industry has changed significantly over the last 10 years, but we can safely say that the UK, even through times of uncertainty, has remained top of our investors’ wish lists and London property remains one of the top global investments spots.

London has become the world’s second-most expensive housing market, behind only Hong Kong and significantly ahead of third-placed New York. A square foot in London will now cost US$1,025, compared to Hong Kong at US$1,411, on average.

A survey of 1,033 adults in Hong Kong, conducted by IP Global and YouGov in January this year, found that the UK was one of the top three markets Hong Kong residents would consider investing in, alongside Japan and Australia.

With good reason too, as from 2006 -2016 the capital growth of London property has outperformed the UK average by more than double. Our clients invested £378 million (HK$4.3 billion) into London from 2009-2013 and that group of investors have since seen over £114 million worth of capital appreciation – a pretty impressive return.

This week, IP Global launched a special report on the UK property market which not only draws out key investment trends we have seen over the last 10 years but also current and future buying behaviour and patterns. In general, we have seen prices being driven up by a strong and stable economy, an increasing population and a systemic housing supply shortfall. Regional cities such as Manchester, Birmingham and Liverpool are also moving higher up the investment agenda, as are the suburban areas around London’s commuter belt.

Across London, continued population growth is placing extreme pressure on the city’s housing supply, with rising numbers looking to outer commuter suburbs for better value. Due to this, the outer London population continues to grow at a faster rate than that of inner London, driving significant price growth across the city’s commuter belt.

Many outer London boroughs, particularly those in the east and southeast, are now expected to outperform prime central London. This uplift is further enhanced in locations that will benefit from regeneration investment.