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China's Colonization Of London Hits Ludicrous Speed

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http://www.zerohedge.com/news/2013-12-13/chinas-colonization-london-hits-ludicrous-speed-and-now-its-detroits-turn

Earlier today, Brits were greeted with some good news: London house prices rose to a record in November, "as strengthening demand pushed values higher in all regions of England and Wales" according to Acadametrics. Bloomberg reported that values increased 0.6 percent from October to an average 238,839 pounds ($390,900), and that prices reached an all-time high in London, soaring 9.2% in the quarter, and parts of the southeast as average values climbed 4.9 percent from a year ago. "The trajectory is clearly upward," said David Brown, commercial director of LSL Property Services. "Competition is strong as a result of rising demand and supply of new instructions not growing, a factor that will continue to prop up prices in the long term." As usual, much was left unsaid, such as where demand is coming from. The answer, as is the case virtually everywhere else in the world, is simple: China.

According to another Bloomberg report citing Jones Lang LaSalle, Chinese investment in London between 2010 and Q3 of this year has risen by a "ludicrous speed" comparable 1,500%, or from a frugal GBP54 million to over GBP 1 billion! And boy do the Chinese love London - according to the same report, over 50% of European property investment by Chinese buyers is now in London. As a result, China is now the third-largest overseas purchaser in U.K. behind Germany and U.S., which invested GBP 1.2 billion and GBP 1.1 billion respectively. "We expect the pool of investors from China targeting London to grow significantly in the coming years. They will consider everything from urban regeneration sites through to trophy assets," Damian Corbett, JLL’s head of Central London office investment, said in statement.

[more]

November%20Credit%20Creation_2_0.jpg

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Japan bought up half of Manhattan just before their property bubble imploded.

It's kinda what happens.

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I don't think TPTB care where the money comes from as long as it keeps coming....property exports and tourism makes up a large part of our GDP. ;)

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Phew.So what.That is only £330mil per year from Chinese who count for 50% of purchases.Considering that they buy property of a few million to a hundred million,their "investment" into London property is a drop in the ocean considering how much London prices have gone up in 3 years.Culprits of London HPI are not Chinese or Russian oligarchs or...It is liar loans+FLS+Help to buy.

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http://www.zerohedge.com/news/2013-12-13/chinas-colonization-london-hits-ludicrous-speed-and-now-its-detroits-turn

Earlier today, Brits were greeted with some good news: London house prices rose to a record in November, "as strengthening demand pushed values higher in all regions of England and Wales" according to Acadametrics. Bloomberg reported that values increased 0.6 percent from October to an average 238,839 pounds ($390,900), and that prices reached an all-time high in London, soaring 9.2% in the quarter, and parts of the southeast as average values climbed 4.9 percent from a year ago. "The trajectory is clearly upward," said David Brown, commercial director of LSL Property Services. "Competition is strong as a result of rising demand and supply of new instructions not growing, a factor that will continue to prop up prices in the long term." As usual, much was left unsaid, such as where demand is coming from. The answer, as is the case virtually everywhere else in the world, is simple: China.

According to another Bloomberg report citing Jones Lang LaSalle, Chinese investment in London between 2010 and Q3 of this year has risen by a "ludicrous speed" comparable 1,500%, or from a frugal GBP54 million to over GBP 1 billion! And boy do the Chinese love London - according to the same report, over 50% of European property investment by Chinese buyers is now in London. As a result, China is now the third-largest overseas purchaser in U.K. behind Germany and U.S., which invested GBP 1.2 billion and GBP 1.1 billion respectively. "We expect the pool of investors from China targeting London to grow significantly in the coming years. They will consider everything from urban regeneration sites through to trophy assets," Damian Corbett, JLL’s head of Central London office investment, said in statement.

[more]

November%20Credit%20Creation_2_0.jpg

They quote JLL in their report. I can honestly say that everyone I have dealt with from that organisation has been somewhere on the sliding scale between useless and absolute pr1ck. Had to get that offy chest.

In terms of the topic, as others have mentioned, seems a drop in the ocean, but the UK property market food do with some more transparency. If it's a necessity like gas and leccy, one wonders why it isn't more closely scrutinised.

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Bank of America has advised clients to take out default insurance against Chinese debt, warning that monetary tightening by China’s central bank risks setting off a bout of serious credit stress in 2014.

They'll just have to use Help to Buy then. That's what it was put there for.

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Bank of America advises China default contracts to hedge debt storm

Doesn't advice from that sort of source usually involve hefty extra amounts off the balance sheet "because everyone else is doing it".

Often known as the Greek Problem but depending on which country is in crisis because of it.

Thank goodness the UK economy is in such good health (and remaining vigilant) and can weather the storm.

Edited by billybong

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