Chinese Investors Take Big Slice of Major Property Markets
May 23, 2011 - China
Hong Kong China and Mainland Chinese investors have become a major force in the global property market and their share of the market is expected to grow even further. Favoured destinations of Chinese buyers include university towns in the US, Canada and Australia where their children study, and especially central London, where they are now the largest overseas buyer group. Figures from agency Knight Frank show that 11 per cent of international property investors in prime central London's new homes market are Chinese.
The mainland's rapid economic growth means it now has 343,000 high net worth individuals, or people with more than US$1 million in investable assets, according to Scorpio Partnership. The recent tightening of real estate policies in China has also served as impetus for investors to look abroad.
Buyers are active at all ends of the spectrum. At the top end of the market, agents recount helping mainland business people purchase US$23 million houses in London, saying that Chinese investors were taking advantage of the slump in property prices overseas to buy into these markets for capital gains in the future. Chairman of Chinese Estates Group, Joseph Lau, recently bought a six-floor house in London's exclusive Eaton Square for a whopping US$50million.
Currency fluctuations in some countries have also made property less expensive. According to Rueters, the Pound has depreciated 20 per cent against the Hong Kong Dollar and 30 per cent against the RMB, while the US dollar has depreciated 10 per cent against the Yuan.
Source: LP Luxury Properties
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