Asian investors snapping up London homes - According to latest statistics
British Property Federation outlines a rise in overseas investors buying homes in the UK capital of London.
Hong Kong-based Direct Property Group comments on a recent report by the British Property Federation which outlined a rise in overseas investors buying homes in the UK capital of London.
The research claims that overseas buyers accounted for 15 per cent of purchases in the capital in 2013 – as much as 80 per cent in Prime Central London.
The report found that of the 61 per cent bought by investors, 48 per cent were bought to let, three per cent were purchased by owner-occupiers, five per cent were bought for investors to sell, and eight per cent were built to rent.
Many of the overseas investors come from Asia and Singapore. Iain Brand, Joint Managing Director of Direct Property Group, based in Hong Kong, comments:
“There is undoubtedly an appetite for London's property market from our investors across the world, but particularly in Asia. We’ve noted a surge in interest in the past few years, mainly down to beneficial exchange rates. Prime Central London’s real estate is also regarded as relatively safe and secure, which is attractive to our buyers - and 2012’s Olympics in London has obviously fuelled demand. Its education system, vibrant culture and an ethnically diverse population are cited time and time again as reasons for investing there.
“While factors in our home market continue to drive residents out, including property prices rising by 60 per cent since 2009, overseas property investment is a valuable income for many in Asia. Buy-to-let allows some investors to take a yield, while others buy more for capital appreciation. And the spotlight is firmly on London at the moment - the strength of the Singaporean dollar in the last two years means London has looked significantly cheaper.”
Investors are now paying an average of £1.45 million ($2.42 million) for central London properties. It is expected that London property prices will leap a staggering 43.5 per cent by 2018.
Brand concludes: "The volatility of markets over here is driving people to Europe and London in particular. Hong Kong and Singapore's housing markets saw prices plummet 56 per cent and 72 per cent respectively in one year during the recession, compared to 11 per cent in Prime Central London. Direct Property Group’s London property portfolio continues to grow."
ENDS
info@directpropertygroup.com
00852 2588 3588
Direct Property Group are established specialists in global property investment. Based in Hong Kong, the company buy and sell period properties in Prime Central London that provide their Asia based clients with significant returns.
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