In a thought leadership article written by 11K Consulting, a leading UK-based China-focused public relations agency, predictions were made by eight respected Chinese-Asian industry experts in the areas of taxation, law, immigration, wealth management and real estate sales.
We explore the main findings below.
Education, education, education
It is predicted that in the aftermath of the pandemic, education will remain a key driver for Chinese and Asian buyers of residential property in the UK. Safety is also becoming a priority, and there will be continued increased use of digital tools for viewing properties with ongoing global travel restrictions caused by Covid.
Rafael Steinmetz Leffa, Executive Director of GWM, said: âFor clients based in Mainland China, the main trend I have witnessed is a real willingness to move to the UK. An education reform has created difficulties in obtaining private lessons or accessing international schools. This reform is pushing many investors to consider moving to the UK, known for its education. “
He added: âI have also seen an increase in demand for financing products for real estate investments made by these investors. This increased need for mortgages and other forms of lending is certainly growing among buyers who in the past quite often disclosed and promoted the fact that they had paid in cash. This, in turn, changes the general habit of these investors.
Catharine Che, Director, Head of the Asia Department at Sotheby’s Realty, said: âThe number one trend would be to increase investments with [a] budget of around Â£ 500,000. The target cities are London, Birmingham, Manchester, Oxford, Cambridge and York. In terms of the move, the budget would be around Â£ 5-10million. Target homes in the suburbs of London and London with good living and good schools.
Joanne Chung, Senior Immigration Lawyer at Woodcock Law & Notary Public, said, âWe have seen many foreign buyers interested in new construction properties, although there are a growing number of agents. procurement who offer a full project-managed renovation service, including HMOs. We continue to see steady growth in instructions, although the numbers have declined since the end of the stamp duty holiday. “
She added: âWe expect demand from Asian investors for UK property to continue to be strong through 2022 as the housing shortage remains a serious problem for the UK housing market. Young professionals are likely to seek rentals, which shows great potential. for returns on rental investment in large cities. We believe rental prices will rise even more as the UK market continues to grow alongside increased demand.
Dr Ian Zhu, Head of China Overseas Investments – China Britain Services Group, Grant Thornton UK LLP, said: âMy observation is that security has become one of the main concerns. Some new buyers don’t dare to live in the house as they feel windows and doors can be easily broken into while high security apartments have to go through various security checks. “
He continued, âAnother trend for buy-to-let is that luxury apartments are very popular with Chinese students whose parents are very supportive of letting them stay in a two or three bedroom apartment without sharing with others. due to concerns over Covid-19 and providing sufficient space in the event of another lockdown.
Steven Landes, Managing Director of Hawksford, said: âThe number one trend will be increasing competition from local buyers for new UK properties that buyers in the Chinese / Asian markets tend to favor. This growing competition comes at a time when labor and material supply issues caused by Brexit and Covid have delayed many new developments limiting the supply of new properties.
He continued: âAt the same time, local buyers in the UK are seeing extremely low interest rates making mortgages even more affordable for those whose incomes have not been affected by Covid. This has little effect on Chinese / Asian investors investing in the UK residential property market as they tend to be cash buyers. “
Research and comparison
Amy Hon, Senior Partner – Strategy at New Vision, said: âWe expect the Chinese market demand for UK real estate and overseas investment to become more complicated during the year. coming soon, which means Chinese customers will expect better service from a specialized organization. . “
She added, âAfter dealing with many Chinese customers, we have observed a noticeable trend. Customers used to ask about a few properties, but they have become more keen to research and compare a wide variety of properties these days. As an organization serving buyers, our strong relationships with the main developers and the main real estate agents in the market allow us to offer a wide range of options and the most suitable and optimal solutions to our clients.
She continued, âMultiple ownership options, remote visits, professional analysis reports and comprehensive overall planning from a specialist organization like New Vision are the benefits clients will enjoy in making a reasonable investment decision. and realistic, even without a physical property visit. “
Caryn (Shu Hui) Toh, Associate Lawyer at Ronald Fletcher Baker, said: âInvesting in digital marketing, high-quality photographs, virtual tours and short films of the neighborhood, for example, can enable buyers to have a real idea of ââwhere they will be living. . The photographs would be targeted at the appetite of consumers and the idea is that this will help them positively in their decision making.
âOnline platforms will also play an important role in changing the way investors, buyers and sellers navigate the residential real estate market and businesses. Gone are the days when you had to be “local” to buy properties. Of course, not to mention that building relationships is always important. “
Finally, Parikshat Chawla, Director of Industrial Relations at Pacaso, said: âThe biggest trend I have noticed recently is the inclusion of shared workspaces in new developments – both apartment projects and of villas. With working from home now becoming the norm, many landlords and tenants still prefer to get out of the house to do chores or make their Zoom calls, etc. in complete privacy. These shared workspaces are an absolute boon for anyone who finds themselves in such a situation. “