Chinese buyers look to put cash in London's 'safe haven' property

ECONOMIC turmoil in China has led to a jump in the number of Asian investors property hunting in London, according to estate agents.

townhouses in LondonGETTY

Chinese interest in London property has picked up, according to estate agents

Interest in property in the capital picked up after China's stock market bubble burst over the summer.

Experts say its's too early yet to tell how many more transactions the crisis could cause, but expect further cash to come out of China and into London property.

Tom Bill, head of London residential research at Knight Frank, said: "There is evidence Chinese buyers have stepped up their interest in ‘safe haven’ global property markets like London and are increasingly looking for homes in ‘golden postcode’ neighbourhoods like Mayfair, although it is too early to discern any impact on transaction levels."

Fears over China's slowing economy and an over-inflated stock market hit home in August, and the Shanghai Composite Index has now lost around 40 per cent of its value since June.

Some experts believe that the turmoil is the start of a prolonged economic downturn in China, which could affect the rest of the world.

Property in the capital is seen by global investors as safe place to house cash in times of stock market volatility.

During the last financial crisis, London's booming property market attracted billions of pounds in foreign money.

Camilla Dell, managing partner of buying agency Black Brick, said: “It's too early to say whether the situation in China will have a major impact on the prime London property, but, for those investors nursing big losses on their stock market portfolios, finding the cash to make a property investment will have got harder.

"However, there is reason to believe that the volatility we're seeing in financial markets could, in fact, increase demand for bricks-and-mortar asset.

"Recent years have seen enormous wealth built up in China's 'real' economy, and that wealth will become an increasingly important factor in markets around the world in coming decades – including London's property market.

“Stocks and shares will go up and down but, long-term, demand from China is only going in one direction.”

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