Wednesday, Sep 29, 2010
Are Asian investors propping up the London Market?
Reuters: DEALTALK-London calling: Asia investors load up on UK property
Over the past year, Asians have invested a total of 761 million pounds, or more than $1 billion, in newly built apartments in central London, up from around 250 million pounds a year earlier, according to real estate company Knight Frank.
Posted by miken @ 11:14 AM (748 views) Add Comment
5 Comments
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1. mark said...
could they be hiding their money by buying UK property, eg in readiness for an asian crash
might be wide of the mark or talking utter rubbish just a wild thought
2. str 2007 said...
I think they've been suckered by some clever marketing.
Remember all those empty blocks that had a few disfunctional families on benefits living there making them unlivable for normal people and impossible to sell to anyone who could visist them ?
Simple solution - market them to investors who can't visit.
3. str 2007 said...
Or looked at anther way if it's Knight Frank marketing properties soooo expensive they put a pric on the advert then you're probably only talking about a hundred or so cetral london town houses, so not really a huge deal.
4. Maske2g said...
This article was on here a fortnight ago.
5. drewster said...
£761m is not small change. Even at £300,000 per apartment (Asian buyers prefer apartments to houses, unlike us Brits) that's still 2,500 properties, most of which will be in London. These are all new-builds (again, Asian buyers prefer new-build); and most are buy-to-hold rather than buy-to-let, although some will be let through agencies.
As I see it, Asian investors in London today are making the same mistake that southern investors in northern cities made five years ago. Buying off-plan, speculating on capital gains, buying at big property shows in their home town from slick salesmen. It was quite ridiculous really - Londoners were buying off-plan flats in Liverpool from salesmen at the Property Investor Show at Earls Court. It makes timeshare salesmen (the big con of the 1980s / early 1990s) seem almost honest.