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5 Long-term benefits of investing in London property for Hong Kong buyers

The UK’s property market has long been renowned worldwide for its stability and impressive growth potential. It has become an increasingly attractive destination for international investors seeking both security and substantial returns. Among these investors, Hong Kong buyers have shown a growing interest in London’s property market. In this blog, we will explore the top five long-term benefits of investing in new-build London properties for Hong Kong buyers.


Affordability and BNO immigration rules

Affordability has been one of the most compelling reasons for Hong Kong buyers to invest in a London property. Hong Kong consistently ranks as the world’s most expensive city, with average property prices nearly double those in Central London. This stark contrast makes London an alluring and financially savvy choice for those looking to invest in property.

In addition to its relative affordability, the 2020 changes to the British National Overseas (BNO) immigration rules have significantly impacted the property investment landscape. The new rules grant eligible Hong Kong residents the right to live and work in the UK, which has prompted many to consider purchasing property as part of their relocation plan.

Stability amidst challenges

The London property market has demonstrated remarkable resilience even in the face of tall challenges such as Brexit and the COVID-19 pandemic. Despite uncertainties, the constant influx of students, families, and working professionals has maintained strong demand, resulting in substantial capital gains for early investors.

The enduring appeal of London as a global financial hub ensures a steady flow of professionals seeking accommodation. This consistent demand contributes to the market’s stability, making it a safe haven for Hong Kong buyers looking for long-term investment opportunities.

Thriving buy-to-let market

London’s ever-growing buy-to-let market offers Hong Kong investors a lucrative opportunity. High tenant demand, coupled with relatively low supply, has led to increased rental rates. In some areas of the city, rental yields have reached as high as 6%, providing a steady stream of rental income.

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Furthermore, London’s rental market benefits from diversity, attracting a wide range of tenants from various demographics. This diversity helps minimise the risk associated with relying on a single tenant profile, enhancing the stability of rental income for Hong Kong buyers.

New-build properties and regeneration zones

Investing in new-build London properties has become increasingly popular among Hong Kong buyers for several reasons. These properties come with longer warranties and require minimal maintenance due to their modern designs and energy-efficient features. This translates to lower ongoing costs and a hassle-free ownership experience.

Read more on: Concentrate on Nine Elms – The largest regeneration area in Central London

Nine Elms
Nine Elms

Many of these new-build properties are located in areas undergoing massive regeneration, such as Brent Cross and Nine Elms. These neighbourhoods are being upgraded with improved infrastructure, amenities and transport links. As a result, the value of properties in these zones tends to appreciate rapidly, providing substantial capital growth potential for investors.

Additionally, purchasing new-build properties opens up a plethora of financing options, making it easier for Hong Kong buyers to secure favourable terms and enhance their investment portfolio.

Impressive capital appreciation

London’s property market has a track record of impressive capital appreciation, making it an attractive choice for Hong Kong buyers seeking long-term wealth accumulation. Some London neighbourhoods, such as Camden and Islington, have seen property prices appreciate by almost 4% annually.

In stark contrast, according to property experts JLL, Hong Kong’s property market has experienced a consistent decline, with property prices falling by almost 16% from its peak, just two years ago. This divergence in performance underscores the resilience and growth potential of London’s property market, making it a wise choice for Hong Kong investors looking to safeguard and grow their wealth over time.

In conclusion, London’s property market offers a compelling investment opportunity for Hong Kong buyers. The combination of affordability, stability, a thriving buy-to-let market, new-build properties in regeneration zones, and impressive capital appreciation potential makes it an attractive and secure long-term investment destination. With the added incentive of the BNO immigration rules, London’s property market is likely to continue drawing Hong Kong buyers seeking both financial security and a prosperous future in the UK.


About the Author

With over 60 years of experience in London market, Benham and Reeves offers a comprehensive one-stop service which includes London property sales (purchase and selling) and full letting and management services to investors. Benham and Reeves Hong Kong SAR office was established in 1995 to provide real estate agency services to Hong Kong buyers, sellers and landlords in regards to all their London property needs.