UK Real Estate Market Buzzes with Hopes of Hong Kong Immigration Boom... "Surge in Hong Kong Client Inquiries"

Hong Kong Buyers Sweep Up 450 Billion KRW Worth of Luxury Homes in London
UK Real Estate, Stagnant Since COVID-19, Expected to Recover

[Image source=Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] The UK government announced that it will accept immigrants from Hong Kong starting next year, causing the UK real estate market to stir. The number of immigrants to the UK is expected to reach up to 3 million, and since housing prices in Hong Kong are more than twice those in London, there is growing optimism about Hong Kong residents' purchasing power for homes. This is analyzed to be a positive factor for the UK real estate market, which has seen a sharp decline in transactions since the COVID-19 pandemic.

According to Forbes and others on the 23rd (local time), UK real estate brokerage firm ViewChamp Estate revealed that from December last year to June this year, Hong Kong buyers spent $374 million (approximately 449.3 billion KRW) on luxury home purchases in London. This accounts for more than 15% of the total transaction amount of luxury homes purchased by all foreign buyers, making it the largest scale.

UK construction company Coda Development also announced on the 30th of last month that since the enforcement of the Hong Kong National Security Law, Hong Kong buyers have inquired about 130 apartment transactions in the UK, of which 35 units have been sold. The Hong Kong South China Morning Post (SCMP), citing Platinum Rise Real Estate, reported that "inquiries for real estate purchases in major UK cities such as London, Birmingham, and Liverpool have increased by more than 25% compared to previous years."

This trend is particularly notable given that the UK real estate market has experienced a sharp downturn since the COVID-19 pandemic. On the 21st, the UK HM Revenue and Customs (HMRC) reported that the number of residential property transactions in the UK in June was 68,670, a 31.5% drop compared to the previous year. Especially since the UK government specified a concrete timeline for accepting immigrants holding British National (Overseas) (BNO) passports from Hong Kong starting next year, the UK real estate market is expected to become more active. On the previous day, UK Home Secretary Priti Patel stated in a statement to Parliament, "From January next year, we plan to accept visa applications from BNO passport holders," adding, "BNO passport holders can obtain visas even if they are currently unemployed and can bring their families with them."

Hong Kong residents also have considerable purchasing power for real estate. According to CBRE's 2020 Global Housing Report, the average property price in Hong Kong this year is $1.25 million, more than twice the $620,000 recorded in London. Jeremy Ji, a researcher at ViewChamp Estate, said, "Among the expected 3 million Hong Kong immigrants, the top 10% in assets, about 300,000 people, will be major players in the UK real estate market," adding, "Among them, the wealthy 10%, about 30,000 people, will purchase luxury homes in central London."

This content was produced with the assistance of AI translation services.