Chinese investors put their trust in property

Chinese investors put their trust in property

Chinese investors have always had a penchant for property, and despite the political and economic uncertainties across the globe at the moment, this doesn’t seem to be waning.

Popular investment hotspots for Chinese investors include Hong Kong and, especially since Brexit, the UK. The low value of sterling has prompted Chinese investors to hone in on the UK market with Manchester topping the list of cities they’re aiming at.

So why Manchester?

Well, Manchester’s population has grown by 19% over the last decade but housing hasn’t. There is a huge supply and demand issue in Manchester which is pushing up house prices and rents. In addition, Manchester is full of young professionals and students, who are prime candidates for buy-to-let properties. In essence, this means there is a ready supply of tenants for buy-to-let properties in Manchester and people are prepared to pay a premium to live in them.

In Q4 of 2016 there was a 50% increase in investor interest in UK property from Chinese investors and Manchester was the clear front-runner. HSBC also named Manchester as the city which had the highest rental yields in 2016 so this further highlights the city as a great place to invest.

As the UK’s exit from the EU continues to unfold, it will be interesting to see where Chinese investors turn to next. Watch this space!