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28th May 2021
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Chinese investors now favour the UK property market over the US as HNWIs continue to invest overseas

According to Chinese marketing consultancy Emerging Communications, the UK has now surpassed the US as the preferred destination for private property acquisition by Chinese investors, with 61% of high-net-worth individuals in China looking to purchase and invest in property overseas.

Despite the Covid-19 travel restrictions in China throughout most of 2020, the Stamp Duty holiday and subsequent extension triggered an increase in investment activity amongst Chinese residential buyers into the UK property market that reportedly will not slow down. Emerging Communications also reports that buyer demand from Chinese investors will only grow, as China is predicted to become the largest economy in the world by 2027, with the primary beneficiary of growth being the Chinese middle-class.

With over 26,000 ‘ultra’ high-net-worth individuals (UHNWI) living in China having over £25 million worth of capital ready to invest, many are looking to invest in the UK property market, as it is the single most popular option for investment amongst Chinese individuals. Over 60% of China’s high-net-worth individuals (HNWI) have already invested their capital into international residential property, with many intending to live overseas themselves and a further 37% planning to make an international home their primary residence. With the UK now surpassing the US as the preferred destination for property investment amongst Chinese investors, the current investment from China is expected to dramatically increase as the investable wealth of the Chinese UHNWIs alone equates to £396.5 trillion.

As China’s wealth spreads into regional cities outside of the main economic hubs of Beijing and Shanghai, middle-class households are acquiring wealth and showing the same motivations as the wealthiest Chinese citizens to purchase property in the UK and move abroad. In addition, 83% of HNWIs plan to educate their children overseas, and to facilitate this, will likely purchase property for their children to live in throughout this period.

If you are looking to purchase property for investment purposes or for your children studying abroad, get in touch today to see how we can help you invest securely in the UK property market.

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