A number of British real estate companies are in China to promote UK properties to Chinese customers. British Ambassador to China Barbara Woodward was on hand to support the British businesses. Are the cash-rich Chinese clients interested in entering the British market while the pound is low?
A group of UK real estate firms is in China to promote investment opportunities in Britain to Chinese customers. British Ambassador to China Barbara Woodward showed her support too.
JLL is among the the world's top five real estate consulting firms.
"In the past 20 years, the vacancy rate in Square Mile in London's financial was about 7.5 percent. Now this rate is only about 3.4 percent. Therefore it's very hard to see price decreases in such a strong demand," said Eric Pang, head of China Business Group, JLL UK.
Pang said the pound's depreciation after the Brexit vote opened a door for opportunities in the real estate market. That has attracted customers from the middle east, as well as Southeast Asia. A real estate website in Shanghai said prospective clients for properties in the UK doubled right after the Brexit vote.
"London needs 50,000 units of properties to ensure adequate supply for its rising population. However, the market can provide only 50 to 60 percent of that. There is an obvious shortage in its supply that's why demand is always strong," Pang said.
Housing market activity in Britain surged during the first quarter of this year. But before there's fresh data that includes the economic impact from the Brexit vote, it's too early to tell if it is now a good time to buy in the UK.
