UK mortgage applications are up as Hong Kong investors increase their attention on this attractive real estate market.
According to a recent Reuters report, Hong Kong-based investors are turning towards the UK property market due to the city’s record high commercial and residential property prices.
New figures from Demographia, report that the average home in Hong Kong costs 19.4 times the local salary. Home and property ownership levels in the city are amongst the lowest globally so many local residents are now looking towards the UK housing market as a more affordable alternative for property investment.
UK Mortgage Completions rise 65%
In 2017, a leading offshore bank saw an increasing number of enquiries from Asia. Much of the interest is coming from Hong Kong alone where property prices are currently the most unaffordable in the world.
With a 65% rise in buy-to-let UK mortgage completions from Hong Kong investors compared to 2016, the bank says it has seen further rises in 2018 so far.
North England: A Hotspot for Investors
London has been the steadfast choice for international property investors for decades. However, with higher stamp duty charges on properties and rising costs, the capital is now becoming increasingly expensive. Many locals and overseas investors are “Northshoring” – where people move from London to the North.
This in turn makes Manchester, UK’s second largest and fastest growing city the next highest beneficiary.
Mallam Grant, Head of the Hong Kong office at Alliance Investments said “Many Hong Kong nationals are finding that Manchester is fit to rival London in terms of investment opportunities. The city boasts global accessibility, a booming economy and a competitive property market.”
House price growth in Manchester
A recent market analysis survey by Hometrack revealed that Manchester has seen a growth in house prices since 2015, with prices rising over seven percent year-on-year.
Owing to several factors such as multinational companies expanding within the city, increasing job opportunities, high graduate retention rates and a growing cultural hub, Manchester is becoming a hotspot for working professionals.
The South China Morning post purports that 58 per cent, or 20,000 students, of Manchester universities remain in the city after graduating.
Furthermore, the concept of Northshoring is a direct result of the volatile real estate market in London making Manchester more attractive to families and young couples.
Hong Kong Nationals heading to Manchester
Along with British expats, a growing number of Hong Kong nationals have been looking to the North of England and Manchester in particular for their next investment opportunity.
Boasting of some of the highest rental yields in the country, Manchester’s city centre is evolving and expanding rapidly. New business districts and modern residential buildings continue to pop up, creating a major economic shift in the UK.
In contrast to London, house prices in Manchester are expected to strengthen in line with high levels of local investment, proving itself to be an enticing option for Hong Kong buyers.
Alliance Investments Hong Kong is offering an easy way to enter the Manchester property market. With an impressive pipeline of luxury residential developments and student accommodations in Manchester’s prime locations, investors can choose from an array of property developments with guaranteed rental yields, capital growth and higher returns.
For more information on our new build and off plan properties in Manchester, call our Hong Kong office at + 852 3977 066. Alternatively, you can email us and one of our Manchester property consultants can assist you to find the best property investment in Manchester based on your investment portfolio and needs.