A recent report from international property advisory firm JLL reaffirms UK’s status as the preferred hub for investments in property for investors from Asia. JLL report reveals that the real estate transaction volumes in the UK involving Asian investors for the first three months of 2017 are at their highest level since 2015.
The data showed that Hong Kong investors spent almost US$3 billion exclusively on UK properties during Jan-Feb-March 2017. This is a significant jump compared to the investment (US$842 million) made by Hong Kong investors during the corresponding period last year.
The Asian investors (specifically private buyers from Hong Kong, China and Singapore) have led the investment brigade in the UK property market by acquiring offices in London's City and West End, outspending global funds and all other foreign groups combined by nearly US$1.3 billion, says the report from the JLL Asia Pacific Region.
The depreciation of the sterling and marginal fall in capital values of the properties are motivating Asian investors to bet big on the UK property market. “The depreciation and capital values drop means that UK commercial real estate is now discounted by 16 per cent on average to overseas capital since the June 2016 referendum. The net yield of City prime buildings is also very attractive,” JLL observed in its report.
The fact that Asian investors continue to show faith in the UK property market reflects the strong fundamentals of the real estate sector. The UK property market has consistently delivered long-term and safe returns to overseas investors.
Asian investors remain confident in the UK, despite many unanswered questions about Brexit, according to a new report from JLL. The property consultancy reveals that real estate transaction volumes in the UK for the first quarter of 2017 are at their highest level since 2015, in local currency terms.