Rich overseas buyers keep prime London market aloft

News Category: Industry News

Chinese buyers are expected to replace Russian investors as major players in the prime central London market, says London agent CB Richard Ellis.

The Chinese are among buyers with foreign currency who are enjoying attractive discounts on prime central London property as the pound remains weak.

In parts of central London it means property is essentially 36% cheaper for buyers with Japanese yen. Investors with currencies such as the Hong Kong dollar, American dollar, Saudi riyal and the United Arab Emirates dirham can expect a discount of around 25%.

The firm also forecast that rich bankers are set to return to the market. It estimates that the bonus pool payable early next year currently stands at £6.8bn.
 
Jennet Siebrits, head of residential research at CB Richard Ellis, said: “The bulk of the London market is trying to dodge the double dip, much like the rest of the UK.

“However, in what is truly emerging as a tale of two cities, the prime central London property continues to defy the downturn thanks to strong interest from international investors.”

Meanwhile, Savills has reported that trophy homes in London are selling at a near record rate, with many sales being made to rich foreigners. The total value of £5m-plus houses sold by Savills in London between April and June was £850m.
 
It is the second highest quarterly figure ever recorded. The most lucrative three months previously was spring 2008.

In the first seven months of this year, £1.6bn of homes worth £5m-plus were sold in areas including Kensington and Chelsea, and Westminster.

But Lucian Cook, director at Savills Research, said he is expecting prime property prices to drop by up to 4.5% in the last few months of this year, ending up 1% lower than they were at the start.


Article courtesy of Estate Agent Today Sign up for EAT newsletter