Chinese property investment throughout UK set to increase
Chinese investment in the UK housing market is set to grow this year. As is traditionally the case, many Chinese buyers will be focusing on London, however there is increasing demand from those looking for more affordable markets.
It was reported by Juwai (international Chinese property portal) that “in 2013 it was predicted that Chinese would be the number 1 foreign buyer group in London by 2016. They have already achieved this one year early”.
The Chinese and many other international buyers like the UK and London property markets for a number of reasons, namely a transparent judicial and tax system, a proven safe investment historically, top education institutions and high cultural diversity.
According to Juwai, “Chinese investors are stating to play a role in the world that is proportionate to the size of their economy. As China further loosens capital controls in the next few years. the Bank of England expects the assets Chinese citizens and companies own overseas to increase by a staggering 600%.”
The IMF predicts that China’s economy will grow by 7.3% this year, compared with a forecast of 2.5% for the UK. In conjunction with this, China created 40,000 new millionaires last year, bringing the total to 1.09m.
Those based in the UK have more in common with their Chinese counterparts than they think. In China, investment in bricks and mortar is widely seen as the best long term investment you can make.