London company Benham and Reeves says a brand new evaluation it’s performed of the capital’s property market since final summer time exhibits an enormous surge in Hong Kong buyers.
Back in July Prime Minister Boris Johnson introduced that as much as three million Hong Kong residents have been to be supplied the possibility to settle within the UK with a visa; since then there have been an estimated 51,228 residential properties bought throughout London.
This is a decline of 35 per cent when in comparison with comparable interval a yr earlier; nonetheless, whereas the London market has stuttered for many buyers, the British authorities provide has seen the variety of Hong Kong homebuyers transacting throughout the capital climb.
Since July 2020, Hong Kong nationals have accounted for an estimated 4 per cent of all London market exercise, up from only one per cent in the identical interval the earlier yr.
As a end result, Benham and Reeves estimate that Hong Kong buyers have transacted on some 270 houses within the prime London market since July of final yr, and 1,932 throughout the capital as a complete.
This implies that when Hong Kong purchaser curiosity alone, the prime London market has seen a 106 per cent enhance on account of the BNO visa provide, with a 144 per cent uplift throughout your complete London property market.
Director of Benham and Reeves, Marc von Grundherr, says: “The UK has all the time been a preferred vacation spot of alternative for Hong Kong funding into bricks and mortar. This has definitely been bolstered by the provide of the visa and for the primary time in some 30 years, our Hong Kong workplace noticed extra curiosity from these seeking to purchase versus these seeking to make investments through the first quarter of the yr.
“Many are doing so with a watch on the longer term, laying the preliminary foundations required for all times within the UK. Some of this exercise is being seen within the very high-end London market, however the truth is, a lot of the demand coming from Hong Kong is focussed round extra common market worth thresholds.
“We count on Hong Kongers to proceed to develop in prominence the place the worldwide make up of the London property market is worried, with many extra transacting within the coming months as we see an easing of journey restrictions.”