With Conservative majority removing Brexit uncertainty, Hongkongers are poised to return to London property market
- Strong mandate for Prime Minister Boris Johnson will finally clear the Brexit fog surrounding London’s real estate market, analysts say
- In swift response, Hong Kong-based K&K Property has announced a £130 million purchase of Orion House in Covent Garden
The overwhelming victory of the Conservative party in the UK elections is likely to lift the prices of London property and convince Hongkongers to snap up real estate in the British capital.
Some analysts said the clear mandate given to Boris Johnson, who retains his post as British Prime Minister, will finally lift the fog of uncertainty clouding London’s real estate market.
“For the property market, this is good news,” said Damien Siviter, group managing director at UK developer SevenCapital. “The uncertainty over the past few years as we remained in this limbo of ‘are we, aren’t we going to leave?’ has had a knock-on effect, hindering some projects which in a normal situation would have gone ahead with little issue and causing hesitation from investors.”
In a sign that confidence is already returning, Hong Kong-based K&K Property Holdings announced on Tuesday it has paid £130 million (US$171.5 million) for Orion House, an office building in Covent Garden, London.
“The office building will provide attractive rental income,” said chief executive Kino Law Kin-yat. “We will actively explore opportunities for different types of commercial projects and will expand our land bank at different options.”
Law, a former UBS investment banker, is the grandson of the late founder Law Ting-pong who built his fortune on the Bossini fashion retailing business before venturing into the property market at home and in Singapore. The Orion House represents its first foray into the UK market, he added.