Overseas property investment in the UK: The impact of COVID-19

According to Buy Association the property market in London has continued to attract investment over the past six months despite the impact of COVID-19. Recent reports reveal that investors from Hong Kong in particular are currently more keen than ever to buy, and Bloomberg recently reported, ‘the number of Hong Kong clients registering with upmarket real estate agency Chestertons is up nearly 80% this year compared with 2019.

So, despite this year’s events and the unprecedented times the world has faced, it seems overseas investors – particularly from Hong Kong - continue to want a piece of the UK property market. Samuel Lewis-Clinton, Sales Director at Vesta and Felix Cheung, Head of Sales at JLL, discuss the market further.

“Asia Pacific investors are attracted to the UK because of its economic fundamentals and its well renowned educational institutions”, says Samuel.

The UK’s housing market is also extremely resilient in times of global political unease, which is another attraction for international investors looking for a relatively secure place to invest their money. 

“Since March of this year we’ve seen more sales opportunities from the Asia Pacific region than ever before. We’ve seen purchasers buy cleverly and instead of just investing in the usual one prime London location apartment, we’re seeing families and friends combining their funds and buying multiple properties in developing London boroughs”, says Samuel.

Felix Cheung of JLL also echoes this: “Since April we’ve seen the mass rental property market in London bounce back. We have seen both enquiries and actual transactions increase rapidly. Areas like Stratford, Harrow and Canning Town are proving to be very successful and popular."

(Images from JLL - 'Why regeneration is redefining Stratford')

Samuel adds, “Many purchasers have found that buying in a regeneration area of London or the South East can help them generate quicker returns than Prime Central London. Due to the understanding that these are less established areas, the potential with ever growing transport links (such as the new Elizabeth Line) is connecting people much quicker than previously.

(Interiors by INVESTA - Royal Albert Wharf)


Felix has also observed an increase in interest in properties suitable for renting. “We’ve seen more buyers actually purchasing two units - either a one bed and one bath, or a two bed and 2 baths as these are relatively easier to rent out.

“And because of this year’s travel restrictions, we’re also seeing more interest in renting out properties as investors and their families can’t get to London to spend time in their residence, so many are more interested in having their apartments furnished by companies like Vesta (with their INVESTA brand) to make them more appealing for the rental market.”

You can see our range of interior collections here.

“It seems that many wealthy overseas investors are being much more hands on with their investments compared to usual.”…Samuel adds.

“The rise in interior package quotes & schemes has doubled in the last year with investors looking at every opportunity to showcase their property in its best light. This helps their investment stand out from the crowd and hopefully generate a more attractive rental income.”

(Casson Square furnished apartments by INVESTA)

It’s clear that oversees investment hasn’t just continued during these times of uncertainty but somewhat flourished; with London being at its core. Offering a wide choice of properties and areas of regeneration - allowing investors to answer and adapt to specific client needs - and ultimately providing a safe, stable and secure market in which to transact, it’s clear why London has remained a strong investment location.

A huge thank you to Felix at JLL for helping us with this blog. We wish JLL and Bellway the best of luck during the Lexington Gardens final phase launch in Hong Kong this weekend (Sat 10th – Sun 11th October). For more information please visit the link above or contact felix.cheung@ap.jll.com.

#Investment #PropertyInvestment #OverseesInvestment #London #LondonInvestment #BTR #PropertyDevelopment #LondonProperty #InvestaLondon

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