Further economic woes in China could help London’s prime property market overcome its Stamp Duty slowdown
The Stamp Duty may not saddle London’s luxury market for much longer.
CityWire parses the latest research from Savills showing that prime property prices have had a rough year in England’s capital, with homes valued at £5 million and over seeing price declines of 4.7%.
Still, there is reason for affluent investors with an eye on London to be hopeful.
The report predicts that the high-end market will rebound by 2020, with price gains of 20.4% over the next five years, outstripping gains made by the mainstream property market.
What will feed this fortune reversal? Part of the answer lies in the East. Chinese investors, rattled by their tumultuous stock market, will turn to real estate, particularly foreign real estate, as a safety measure.
[thrive_text_block color=”blue” headline=”Yolande Barnes, director of world research at Savills, said it was more likely that the Chinese crash would encourage investors into the safe haven of London real estate and said her colleagues in Singapore had been seeing ‘more interest in real estate because people do not like the stock market there’.Barnes argued restrictions placed on investors in the Chinese stock market were leading many in the country to view property as more attractive, but noted it was difficult to get the money out of the country.”] [/thrive_text_block]
London will not be the sole region where Chinese buyers look to move their money. Barnes tells the publication that the capital city will face stiff competition from the property markets in the U.S. and Australia.