Categorized | International

Chinese Investment in London Prime Real Estate Drops

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The number of Chinese investors that purchased homes in London’s prime housing market saw a major drop in the last quarter, falling by more than fifty percent in sales. Analysts are attributing the decline to significant stock market losses that were incurred during the last quarter.

The Chinese had been a major investor in the London prime residential real estate market, accounting for nearly fifteen percent of sales not too long ago. However, that number fell to under five percent in the last quarter.

With the Hong Kong and Japanese market dropping twenty-two percent and fifteen percent respectively, many Asian buyers have opted to hold off on buying additional property in prime markets around the globe. With Europe’s debt crisis looming, many investors have become more hesitant to enter the market at this time.

Many Chinese investors flocked to the London market after the Chinese government implemented restrictions on real estate transactions and lending. The prime market in London market had actually gained a significant amount of international appeal following a decrease in the value of the pound. The combination of China’s imposed real estate limitations, and the weakening of London’s currency led to strong growth in the number of Chinese investors in London.

London’s prime real estate continues to remain a safe haven market for many investors around the world. The number of international buyers has consistently grown during the past year. Analysts believe that the number of buyers from around the world will continue to increase throughout the next year, as investors look for investment opportunities that provide guaranteed returns.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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