UK sees shift in Chinese property buyers' trend

Chinese property hunters are returning their focus to the international market and switching their search from smaller apartments to larger properties, said realtors and developers in London.

Emma Lander, director of the international residential division at Jones Lang LaSalle, said the COVID-19 pandemic has caused a shift in property preferences, with buyers seeking more space for home working and flexible use.

"We have seen this shift in buyer trends demonstrated firsthand with a number of projects launched this year, that would have traditionally sold out of those smaller homes, have in fact seen two- and three-bed apartments secured first," Lander said.

Rosa Tsui, head of the China division at London estate agency Johns & Co, has a similar view. "We are seeing the knock-on effects of this in China, where investor landlords are seeing the benefit of taking on larger units, as those properties with extra space are commanding significant premiums and attracting quality tenants," she said.

According to estate agency Knight Frank, buyers from China represent the largest group of overseas property purchasers in the United Kingdom in the year-to-date.

"Over recent years, we have seen the investment habits of Chinese buyers in London shift toward buying larger units, in addition to smaller studio or one-bedroom apartments that are traditionally popular with this demographic," said Emma Fletcher-Brewer, a partner at Knight Frank.

She explained one of the main reasons for this is the tenant profile, as more international students are looking to share an apartment with friends as opposed to living in halls, so larger unit sizes are more appealing.

"Chinese families are also considering that if two or three children come to study in London, owning one larger apartment is more practical and offers better value for money than investing in multiple studio or one-bedroom apartments across the city," she said.

Among new developments, Battersea Power Station is one of London's most iconic cultural landmarks and is popular among Chinese purchasers.

"We have seen a great deal of interest from buyers in China, and year-on-year, we have seen increasing interest from this particular audience," said Meriam Lock-Necrews, head of residential at Battersea Power Station.

"Chinese buyers are incredibly astute and informed, and know exactly what they are looking for."

Patrick Parsons, Battersea Power Station's China representative, said one of the project's biggest selling points, particularly to the Chinese audience, is the true mixed-use nature of the project.

In 2019, Office for National Statistics data showed that buyers from the Chinese mainland and Hong Kong invested 7.7 billion pounds ($10.5 billion) in London property, including more than 750 million pounds in residential properties in the City of Westminster and the Royal Borough of Kensington and Chelsea.