The team at Experience Invest have been keeping a careful eye on the turmoil in the Chinese stock market recently, and many now believe that wealthy Chinese citizens are looking to move money into the UK property market as way of keeping their cash safe.
It’s not just London and the UK that’s set for an influx of Chinese investments, agents in Australia and Canada are also seeing signs already that Chinese cash is coming into their markets. According to the Guardian newspaper, there’s a huge pile of cash sitting in China that’s earmarked for property investment in the UK and beyond.
Sydney estate agent Michael Pallier told the Guardian that “A lot of high-net-worth individuals have already taken money out of the stock market because it was getting just too hot.” Problems with the market have been widely reported but the Chinese government have taken some recent steps that have helped stabilise the market.
20 per cent in the value of the market has been wiped off since the middle of June, and it’s widely believed that many wealthy investors have cashed out. While much of this money has been put into the Swiss franc, there’s a growing belief that investors see property in UK, Australia and Canada as the best place to put their money.
Agents across the capital are recording interest from Chinese investors. Many of these individuals are looking at placing large sums into property. Figures as high as £150 million have been reported, and some commentators have suggested that a record high London market still looks cheap to many Chinese investors.
However, there have been some issues with Chinese investors who didn’t pull out of the Shanghai stock market quickly enough. The Chinese authorities recently banned shareholders with large stakes in listed firms from selling for six months, and this has led to many Chinese investors being forced to pull out of deals at the last minute due to a lack of funds.
Here at Experience Invest we’ll continue to monitor this trend, keep checking back on our blog or follow Experience Invest on Twitter to keep up with the latest news.
Experience Invest have been trading since 2004 and we’ve worked with all types of investors from first timers to high-NET-worth individuals and corporate clients. As market leaders in UK residential investments, we specialise in high demand, high yield property investments. For more information, or to discuss your own investments needs please contact Experience Invest.