11K Consulting: Hong Kong and Chinese investors still buying - Why and what's the best way to engage with them
Sally Maier-Yip, managing director of 11K Consulting, LPF Member and the UK's leading China PR and comms agency, spoke to Property Investor Today on why buyers from Hong Kong and China are still interested in UK property even in challenging times - and how they can be effectively targeted.
“Despite the ongoing Covid-19 pandemic, Brexit, and the global economic recession we are facing, I am cautiously optimistic and confident to say that these external factors have not stopped and will not stop Hong Kong and Chinese high-net-worth-individuals (HNWIs) and investors to continue to buy either residential or commercial property developments in the UK, especially in London (for both residential and commercial) and Manchester (for residential), in the New Year ahead.”
The Top 3 Reasons for Hong Kong and Chinese
Investment in the UK Market
The weaker pound
In actual fact, properties in the UK are cheaper than before for Hong Kong/Chinese buyers due to the weaker pound. Last year, the exchange rate between the Pound and Chinese Yuan was around 1 to 9. This year it has been around 1 to 8.7 or even 8.6.
That means now is a good opportunity for institutional investors (i.e. funds, family offices and wealth management companies) to look for good bargains. A number property developers in the UK are struggling to sell their properties to the local market; and they still need to pay back their loans. Consequently, they are giving more incentives to Chinese or foreign buyers to buy, such as paying for buyers’ stamp duty for up to two years and giving away furniture for “free”.
Education, education, education
Affluent Chinese parents are increasingly considering sending their children to study in the UK in the coming years as opposed to the USA, Australia or New Zealand, due to the recent hostile relationship between China and USA; and Australia.
These wealthy Chinese families usually invest in education early, even though they may not be familiar with the UK itself and the weather. They can do their own desk research. They can keep it for themselves and pass it to their children. Their thinking is that they buy a property for their children to live in for three years during their academic term in the UK, and after that, they own the property. So that’s a good deal.
UK’s citizenship offer for Hong Kong’s BNO holders
Almost three million HK BNO (British National Overseas) passport holders will be able to start on a path to British citizenship from January 2021, for five years, which will inevitably drive the UK property market in some ways.
Overall, Hong Kong and Chinese buyers perceive the UK property market as a safe haven, and take a long-term view when they make a property investment in the UK. The future is quite bright.
What are the first steps to start engaging with these Hong Kong and Chinese buyers?
Connecting with UK-based intermediates
Invest in building long-term trust
Building your trusting reputation
Check out Property Investor Today or our exclusive Members Section for the full article and commentary.
Head office:
11 College Court, College Crescent, London NW3 5LD, UK
T: +44 (0)7841377018 | E: info@11kconsulting.com
China office:
Room 907, Silvercord Tower 2, 30 Canton Road, Tsim Sha Tsui, Hong Kong
T: +852 98879387 | E: info@11kconsulting.com