At MPIPM Asia 2014 – the international real estate show for professionals, which took place in Hong Kong, one of the popular topics discussed was the UK and London property price growth due to high demand from Taiwanese and Chinese investors.
Managing director of M7 real estate, Richard Croft, has said that the industry is in a period of growth. Adding that there is private equity for the amount of $100 billion from America, trying to enter into Europe. He is also expecting growth within London due to occupier demand, and with a batch of international occupiers, such as Google and Amazon, rising rentals are what will bring these companies in. Meaning investment demand would be ramped up.
The amount of buyers seem to be increasing also, with news that Russia are returning buyers, as well as China’s Ping An Insurance, who are seeking new property to purchase after they recently acquired Lloyds building. A partner at Knight Frank in London, Jeremy Waters, has said that there are a bulk of first time buyers from China, spending over $10 million in the sector. There is also mention of investors from Singapore and Malaysia potentially making a move up the risk curve. However, with London housing having a shortage, and commercial real estate prices being on the increase, Waters also advised that investors need to potentially look into different industries, such as health care, industrial and education sectors.
Bruce Dear, who is head of real estate investments for Eversheds, said that the London property market is the most popular, with office towers being cheaper than other places like Tokyo and
Hong Kong.
Also, with 60 million Britons not living in London, Dear also added that outside of London, in the rest of the UK, it is good economically.
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