Chinese clients play a huge part in what we do at Vesta and form a large part of our customer base. To see in the year of the Dragon and to celebrate Chinese New Year, Yi Wang, our Director of China, shares her thoughts about China’s influence on the London property market.
According to Winkworth, ‘as many as 5% of property buyers in London are from China – and 50% of UK property bought by Chinese buyers is in London.’
Why is London so popular?
“Looking back over the last 10 years I believe property in the UK has had a strong presence due to the country’s successful education system and the diversity of its investment market. UK schools and universities attract some of the very best talent across the world and amongst those are Chinese people looking to invest in UK property and make the UK their home.”
How has this changed over time?
“As well as buying property for their children to eventually live in after school or university, we’re now seeing a trend of more experienced investors purchasing in the UK. In the decade or so, investors have increasingly become more focused on the property they’re buying, its value, and its return.
“The UK market has also become far more accessible for those in East Asia. Due to technological advancements and the availability of information, we’re seeing more and more clients purchasing directly from developers. Previously many developers had advertised through well-known agents but now every UK developer has an Asia-Pacific sales team based at home or overseas.
“We’ve also seen an increase in property purchases because the number of agents in the region has grown so much. The market has become so saturated in the likes of Singapore that agents are now reaching out to China to increase their customer base. These new market players have found innovative ways of reaching out to previously unengaged customers to expand their networks, and as a result, we’ve seen an increase in East Asia purchases.”
Where in London is so popular?
“We see clients in every area of London. When Canary Wharf was first developed it was so popular because it created a unique financial hub that incorporated homes too but since then we haven’t seen any other area do anything remotely similar.
“Again, because property is often a by-product of the top schools and universities, the location is often determined by another decision or factor such as where they work and the ease of their commute.
“Unless we’re working with homeowners, for many of our clients the specific area of London isn’t important. Investors don’t mind where their property is if it is a profitable investment. From experience looking at our corporate clients we have seen less of a correlation or focus on location but more attention on the investment return and added value for their portfolio. This doesn’t mean location isn’t important, other factors just come into play.”
What does this mean for Vesta?
“In terms of interior design and for Vesta, we tend to see the most appetite for our INVESTA furniture collections from the Chinese market, regardless of the size or prices of properties. This service allows flexibility for those who are in the UK who can visit their properties in person, or for those overseas.
“For instance, we recently provided full furniture packs for units at Thames City, the brand-new development in Nine Elms. This was one of our biggest projects yet and is mainly occupied by Chinese and Asian residents.”
And finally, what are your plans for Chinese New Year this year?
“This year I’m staying at home with friends, and we’re celebrating with lots of food and making gyozas. We’ll also be gifting red pockets with money to everyone.”
For more information about how we work with our overseas clients please contact us today at enquiries@vesta-london.co.uk
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