According to new reports the amount of Chinese interest in UK property has reached record highs.
Juwai.com’s recent report from Q4 has found that the number of Chinese enquiries into residential property in the UK have more than trebled in the last 6 months.
More explicitly, interest in Manchester property in August 2018 was up by 200% compared to August 2017. This correlates with recent study which found that flights directly to Manchester from Beijing had led to an increasing number of visitors in the north west, specifically from China.
The report from Juwai, China’s largest overseas property website, also showed impressive figures for other regional cities in the UK. Enquiries about Liverpool were 162.5% up on August 2017, while interest in Birmingham was nine times higher than for the same period a year ago. Interest from China in London over the same period had risen by 65%.
Carrie Law, the Director and CEO of Juwai.com, said: “Most Chinese still have positive long-term expectations for the UK economy and property markets despite Brexit. Most see the UK as a long-term reliable market offering an excellent lifestyle and enviable opportunities for their children to study, work, and live. Are they being too optimistic? Only time will tell.”
Earlier in 2018, the Chinese government decided to relax the rules in place over citizens investing in real estate in the UK and these figures suggest that the policy changes are making a big difference. Those Chinese who have already been investing in the UK now have more options in trading and refinancing the stock that they already own. It also encourages more diversification into infrastructure, business parks, and logistics, asset classes that are now covered by the exemption.
“Buyers from mainland China in particular are much more willing to buy flats that aren’t yet built than are locals in the UK,” added Juwai’s chief executive. “That gives developers the pre-sales they need to start construction.
“Without having pre-sold a certain percentage of the building, they cannot get financing to start paying builders to lay bricks. That’s one reason research in Australia shows that foreign buyers enable the construction of four residences for every single one that they purchase.”