London will soon experience growth in its prime property. According to a recent report by propertywire.com, "Chinese investors, particularly those from the mainland are set to become the biggest group of investors in London." It seems that it wasn't just London, but other countries as well. According to a previous report by ft.com, "In the past year, mainland Chinese buyers have become the biggest single group of foreign investors in residential property in the US, UK and Australia." What made the wealthy Chinese moved to the foreign markets? It seems that the wealthy Chinese has taken shelter from the stock market storm in foreign property as reported by theguardian.com.
There is an enormous amount of wealth in China and the rich Chinese are using their wealth elsewhere instead of investing in their homeland. Typical Chinese spend up to £2 million on a new off plan development in London. However the firm believes this will change with buyers from China looking at investing for £2 million to £50 million in real estate as stated in a previous report by propertywire.com.
Most properties being constructed by Chinese developers in prime markets such as New York, London and Sydney are also being traded directly to mainland Chinese buyers as well. On a different note, in London, Chinese buyers accounted for 11 percent of all property transactions above £1m in 2014, up from 4 percent in 2012 as stated in a previous report by ft.com. Other groups that are also eyeing prime properties London are the Russian buyers, and they are the second-largest group of buyers accounted for 5 percent.
As China's decelerating economy and its latest stock market crash, as well as the Shanghai Composite Index, 30 percent was lost. It also furthered plummeted in value in late July. London will expect more wealthy Chinese investors to come and join the field in the coming days, months and even years.