With London reaching an affordability ceiling, property investors in the Far East are turning to real estate in cities such as Manchester and Liverpool.
- Property agents in Hong Kong are reporting 100% uplifts in sales of British real estate in cities such as Manchester and Liverpool
- With values in London reaching an affordability ceiling, investors are turning to other cities for the highest yields and strong levels of capital growth
- The UK’s Northern Powerhouse has been heavily marketed to investors in the Far East, with the huge economic growth forecast raising the investment profile of key northern cities
Chinese property investors are rushing to buy property in key cities across northern England.
Real estate agents in Hong Kong are reporting huge levels of sales and interest from the Chinese investor community for property in cities such as Manchester, Leeds and Liverpool. Some agents are reporting a 100% increase in sales volumes for apartments in northern cities over the last 12 months and, in some cases, 60% of new off-plan apartment blocks in these cities are being bought by Chinese investors.
In 2014 UK Chancellor George Osborne unveiled the multi-billion pound Northern Powerhouse, a plan to closely connect the biggest cities in the north of England to create an economy that can rival that of London and other key regions around the world. There’s already been high-profile investment into the Northern Powerhouse from investors in the Far East, underlined when Chinese President Xi Jinping visited Manchester last autumn and announced a number of key deals.
And Charis Chan, Head of International Property Sales at Hong Kong Homes, believes that much of the property investment her firm has seen over the last 18 months has been driven by the Northern Powerhouse.
Chan also said: “Many of our clients are now investing in Manchester as there are now direct flights to Hong Kong and mainland China, it’s a university town and everyone has heard of Manchester United Football Club.”
Increased connectivity and significant marketing activity has served to raise the profile of cities such as Manchester further to investors who would have previously only acquired assets in London. With property prices in the UK capital increasingly reaching an affordability ceiling, more investors are becoming acquainted with the investment potential of cities such as Manchester, currently the UK city that boasts the highest yields from property investment.