Chinese Investors Flock to London to Buy Real Estate

An influx of wealthy Chinese are snapping up high-end London properties. Representing 5 percent of buyers and growing, they are favored by brokers for paying in cash in an effort to evade Chinese capital regulations. To cash in on the influx, brokers hire Mandarin and Cantonese speakers and even open offices in China; some buildings omit the number four, considered unlucky by Chinese. The investors view London’s real estate market as more stable than overheated Asian markets – Hong Kong’s appreciated 45 percent in the past year. Unlike many other wealthy foreigners, the Chinese mostly buy the properties as investments, and London’s fluid real estate market and limited restrictions on foreign ownership make it attractive. Some buyers plan on sending their children to British universities, securing apartments where the students can stay, and in the meantime rent out the property. Such family plans and investments rely on an open economy and reinforce connections between the two nations. – YaleGlobal