Why Chinese property investors choose to buy property in the UK?

UK and China has an improved trade relations. A rising number of Chinese children are now being admitted in top schools along, which is among the key factors that drive Chinese investment in properties at prime central London.

W.A. Ellis, an agency in prime central London, made a research that stated the liberalization of China’s currency, the Renminbi (RMB), has created a rising price of newly constructed residential properties in China’s first tier regions and an increasing number of Chinese high net worth personas seek offshore investments. This adds attraction to London’s real estate.

The agency’s recent research pointed out that about £3.5B was spent exclusively on UK properties made by Chinese investors in 2013. The current Chinese currency strength means that the price of buying properties as assets in London is around 8% cheaper than it was a few years back.

The research done by Hong Kong-based property firm – Centaline – on the first quarter of the year 2013 emphasized the impact of around 15% tax introduced on foreigners that invest in Hong Kong. This resulted to four-year low decrease in the sales of luxury houses to mainland Chinese investors.

Lucy Morton – a senior partner and head of lettings at W.A. Ellis has returned from a trip to Hong Kong – said that there is confidence in the real estate market in London. Investors have become frantic to buy and the liberalization of RMB has immensely helped, which is partly the responsible for widening the profile of buyers.

She also stated that around 20 years before buying London properties are exclusive to the rich. Today, there are high net worth personas, in large numbers, who are interested in investing within the capital.

She highlighted the interest of buying through exhibitions. People are interested looking at exhibitions considering that they have researched about the area where they want to buy as well as the schemes and developers of the property they are going to buy. Deposits are made ready and so they leave right after making their purchase.

Morton also pointed that South East Asian investors have purchased new luxury property developments within central London, which are usually one or two bedroom apartment. There are majority, however, that are buying just one apartment but other high net worth families can spend millions.

Apart from the ones mentioned, she also explained that there has been an increase in property portals such as Juwai.com and search engines that are in Chinese dialect such as Baidu. She added that this has helped the marked and will play a major role in the near future.

According to Morton, education has prompted this residential investment. There are children who attend private schools in London and they are in greater numbers. Mandarin is currently becoming part of the curriculum in a lot of schools. When they reach university age, a lot of students arrive and because of this their families seek private rented sectors. The steady growth of South East Asian students’ number has been seen, which also increased the rental numbers of centrally located properties.

Property Sales increase in Spain

Property Sales increase in SpainThe Spanish property market because of the rise in sales of residential properties grew by eight per cent in June 2014 compared to last year.

Sales statistics just released from the National Statistics Institute, shows that Spain has seen a year on year increase in property sales for four consecutive months, ending a ten month duration of year on year declines.

Valencia boasts the largest increase of house sales per 100 thousand people, followed closely by the Canary and Balearic Islands.

In relation to this, Madrid performs the highest, with a 30.4 per cent increase. Extremadura, with 25.7 per cent, and Navarra, at 19.3 per cent, placed at second and third.

There has been very positive movement on the Costa del Sol this year. to put it into perspective: there have been four new housing developments within the Costa in 2013 compared with none throughout the previous 3 years. Potential developers need to stay grounded, however, as thirty per cent of recent homes on the Costa are still to be sold.

An average two-bedroom apartment on the Costa del Sol can go for €196,956, while a family home comes in at €393,520.

Experts predict that Spanish property markets is likely to stabilise towards latter part of the year.

More positive indicators for the Costa del Sol

Marbella is not the only large town to be influenced by the huge influx of tourists in 2014. With an estimated 10 billion euros being created in 2014 across Andalucia other councils are also making improvements which is great news for the construction industry.

The influx of tourism to Marbella this year has been so impressive that the town has been added to the small list of areas that is permitted to now start opening shops on Sundays, which is not only great news for the local residents but also for tourists.

In light of the pending local elections which are less than a year away now, one of the most eagerly anticipated projects of this year is due to start after the Summer in Estepona. The so-called Grand Boulevard is a major project which will transform Estepona and the surrounding area and will consist of a new shopping centre, more tourism related attractions and a new recreational centre. This privately funded project has a price tag of 30 million Euros, with the local council also financing a multi-millon euro botanical park boasting the biggest orchid collection in Europe.

Elsewhere on the Costa del Sol there is due to be other development of museums, tourist attractions, theatres, and infrastructure in Velez Malaga, Malaga City, Benalmádena, Mijas (old town), Rincón de la Victoria, Alharurin del Grande, Cartama and Fuengirola. Not only will all of the projects across all of these areas on the Costa del Sol bring in more tourists, but it will boost the economy and reduce unemployment greatly.

Costa del Sol leading the way for Property Recovery

A recent study has provided evidence that there has been an increase in house prices in Marbella and Manilva. Off-plan new developments seem to have reached their minimum prices and indications are now showing a rise due to foreigners.

Two areas in Spain are showing definite signs of property recovery, Costa del Sol and Costa Blanca. The study that was undertaken gathered information from 60 coastal regions of Southern Spain and demonstrated due to financial establishments lowering prices that property was now selling faster.

Its still early days in respect of the Spanish construction industry however areas in the Costa del Sol and Costa Blanca are showing very positive signs. New constructions in the Estepona and Marbella area, which have been built with the foreign market in mind are building good interest.

The general consensus is that property prices are now slowing however this is only in certain areas of Southern Spain. Prices on the Costa del Sol for example have dropped to their lowest averaging a 1.1% drop in the first quarter of 2013 and 2014.

It is thought that property sales may increase as much as 25% this year in Marbella due to demand by foreigners.

Taylor Wimpey´s New Apartments Horizon Beach La Galera

Horizon Beach La Galera EsteponaAWARD WINNING UK property developer Taylor Wimpey is launching a fresh £10 million project on the Costa del Sol this month.

The La Galera development, in Estepona, is going to consist of thirty six luxury homes and is due to be formally launched with an opening on April 30th. Taylor Wimpey has constructed over two, 500 homes in España over the last fifteen years, as well as Los Arqueros Golf, in near  Benahavis.

“Estepona is a perfect location for further investment,” stated Ignacio Oslé, regional director in Andalucia. “We want to thank Estepona town hall for their support in getting planning permission last October.”

Property sales increased more in Marbella last year than anywhere else in Spain

The property market in Marbella is recovering and the town is now showing signs of being a leader in this sector. This emblematic town on the Costa del Sol ended last year with a total Property Sales increasedof 3,115 property sales , a figure which is similar to that of 2007, before the bubble burst. In terms of total figures, Marbella is now in a similar position to Malaga city, where the recovery in the property market has failed to take off and the number of sales has fallen for three consecutive years.
The results for property transactions last year, which have just been released by the Ministry of Development, reveal that Marbella is the Spanish town in which the number of sales has increased the most, by 23.6 per cent.

New expat residents association launches in Estepona

AN EXPAT residents association has been launched in Estepona, which will fight the corner of the town’s large number of foreign residents.New expat residents association launches

The Associacion de Residentes Extranjeros de Municipio de Estepona (AREME) will speak on behalf of its members with public institutions, with the aim of improving services and provisions in Estepona.

It already boasts one coup, successfully reinstating the local bus service.

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Mini housing boom in Malaga’s ‘Golden Triangle’

LUXURY housing in Malaga’s so-called ‘Golden Triangle’ is leading the way in the resurrection of the construction industry.Mini housing boom in Malaga´s 'Golden Trianlge'

The ‘Golden Triangle’, made up of Marbella, Estepona and Benahavis, is seeing an increase in both the sales of homes and in the construction of luxury housing.

During January and February of this year, Marbella Town Hall has seen an increase of 20% in the licences for luxury homes.

So far the town hall has authorised licences for 18 new housing projects with a combined worth of over €9million.

If construction carries on at this pace, the number of projects for 2014 could be double that of last year, which ended with a total of 64 licences issued.

But Pablo Moro, the councillor in charge of town-planning in Marbella, emphasises the need for caution in analysing the data.

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Spanish market offers bargain basement homes

ALMOST one third of Spanish houses are on the market for less than €100,000.Price Fall

The number of houses sold at that price or less over the past 12 months is even higher -around 64% – according to property site Globaliza.com.

The figure has surged from 2.9% before the onset of the economic crisis and ensuing collapse of the real estate market.

A staggering 68% of houses in Sevilla were sold for less than €100,000 in 2013.

The average property is a three room flat, 83 square meters in size, located in middle class areas of towns and cities.

These properties have lost around 48% of their market value over the past six years, and 7% of their 2007 values have been lost over the past 12 months.

The value of Housing in Malaga, meanwhile, has lost over half its value, 56%, since the property bubble burst. A total 16 percentage points of this decline has come in the past year.

A report by Technocasa found that factors affecting prices in Malaga are as simple as the availability of a lift in an apartment block; those with the facility are priced an average 12% higher than those without.

Olive Press orginial article

A SPACIOUS APARTMENT IN A BEACH FRONT URBANISATION IN ELVIRIA, MARBELLA

A SPACIOUS APARTMENT IN A BEACH FRONT URBANISATION IN ELVIRIA – Ref: MFSA869

elviria_apartment

Price: 315,000€
A spacious 3 bedroom east facing ground floor garden apartment in a beach front urbanisation in Elviria. The apartment is in a block closest to the sea. The third bedroom and bathroom were converted out of storage areas, making this one of the biggest in the complex. The property has been updated recently except for the bathrooms. Offers a very nice outside terrace area, perfect for outside living during the hot summers. The lounge has a fireplace and the master bedroom a little wood burner. AC throughout. The complex has 24 hour security, lovely gardens and pools for the residents use. The beach is just a few steps away.

Ground Floor Apartment, Elviria, Costa del Sol.
3 Bedrooms, 2.5 Bathrooms, Built 209 m², Terrace 50 m².

View full property details and more photos

For more information or to arrange a viewing of this property please contact us using the details below.

Tel: +34 952 907 386 | Mov: 690 937 587
Property For Sale in Marbella
info@marbella-resales.com

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