Overseas investors target prestigious London property
The cost of renting and purchasing up-market properties in the capital is being driven up by a surge in interest from wealthy Chinese tenants and the return of City bonuses.
Research by Curzon Investment Property, the specialist residential investment and asset management services provider, shows that average rents in some parts of west London have soared by 9.2% in the last year.
It believes that some of the increase can be explained by wealthy Chinese tenants taking advantage of the strong Yuan, which has gained since no longer being pegged to the US dollar from June.
Additionally, big City bonuses are encouraging London’s higher earners back to the prestige property sector.
However, Curzon warns that purchasing activity is still well below its 2007 peak, constrained by the lack of funding for buyers who need high loan to value mortgages.
But amongst those overseas investors who do have significant deposits – and who still benefit from around 30 percent discounts on prices because of the weakness of Sterling – interest in buying a London property is approaching 2007 levels.
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News & Views:
Overseas investors target prestigious London property
The cost of renting and purchasing up-market properties in the capital is being driven up by a surge in interest from wealthy Chinese tenants and the return of City bonuses.
Research by Curzon Investment Property, the specialist residential investment and asset management services provider, shows that average rents in some parts of west London have soared by 9.2% in the last year.
It believes that some of the increase can be explained by wealthy Chinese tenants taking advantage of the strong Yuan, which has gained since no longer being pegged to the US dollar from June.
Additionally, big City bonuses are encouraging London’s higher earners back to the prestige property sector.
However, Curzon warns that purchasing activity is still well below its 2007 peak, constrained by the lack of funding for buyers who need high loan to value mortgages.
But amongst those overseas investors who do have significant deposits – and who still benefit from around 30 percent discounts on prices because of the weakness of Sterling – interest in buying a London property is approaching 2007 levels.
This entry was posted on Friday, July 30th, 2010 at 4:08 pm and is filed under Commentary. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.