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Overseas Investors Flock To The Uk Property Market

Date Added 17/12/2013

In the last year alone, house prices in China have risen by as much as 15 per cent, as an increasing number of Chinese investors turn to property as their investment of choice.

One of the main drivers for the dramatic surge in the price of domestic Chinese property is the dearth of other viable investments. In recent years, the Chinese middle classes have experienced explosive growth, as social transformation and economic advancement has swept across their vast nation.

An estimated 60 million Chinese people now have the means to invest in property, which has caused the price of homes in the country`s more desirable locations to skyrocket. With prices rising so uncontrollably, the authorities have taken action to limit house price inflation by banning mortgages for those wishing to buy more than two houses, and stopping single people from owning more than one property.

As their domestic investment opportunities have dwindled, Chinese have turned towards overseas opportunities, with the UK property market, and London in particular, representing an investment that few have been able to ignore.

According to a leading website for Chinese investors searching for property abroad, Chinese investment activity in London has risen by 175 per cent in the past year alone.

The most sought after location for investment property in the UK is the London Borough of Chelsea, whilst Kensington, another area offering extremely attractive rental yields and resale values, followed closely behind.

Another contributory factor for the staggering sums of money flooding into the capital is the high esteem a British education is held in by the East. According to recent data published by the Office of National Statistics, the City of Westminster alone is home to 75,000-100,000 international students, which represents a quarter of the total number of international students who come to study in the UK.

Wealthy Chinese families are spending big money on property for their children to live in while they study, and places where they can stay when they come to visit. This mass migration of young people from the Far East to the very heart of London has resulted in a six-fold price rise for Central London postcodes in 16 years, from £221,679 to the current high of £1.36m.

With London property investment promising such high yields, it`s hardly surprising Far East investors are casting their eyes West.
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