Chinese investment in London’s skyline is a shadow of what it was

But the reasons behind London's drop in Chinese investment dollars differ from those of NYC

Jun.June 03, 2018 06:23 PM

London. (Credit: Pixabay)

All good things come to an end–at least until there’s some closure on Brexit.

The Financial Times reports Chinese buyers’ interest in London has waned to a fraction of what it once based on research by Cushman & Wakefield, but not for the reasons New Yorkers are experiencing on this side of the Atlantic. Instead, London’s real estate industry is chalking it up to Brexit and the theory seems to have legs.

“On recent trips to Hong Kong I’ve noticed an increasing caution about the UK market,” real estate lawyer Bruce Dear at firm Eversheds Sutherland told the Times. “Their previous exuberance has quietened down a bit as they watch to see what will happen with Brexit and the UK economy in the autumn.”

Going a step further, Colliers International’s head of cross-border capital markets, Richard Divall, said to the Times that, as a result, “if anything we’re going to see some of them selling.”

In the first three months, Chinese buyers poured only £432 million into property deals compared to last year’s total of £7 billion, as the Times reports. In New York, Chinese investment has fallen amid the country’s crackdowns on capital outflows, which has, in certain cases, partly triggered fire sales of major trophy properties. [FT]Erin Hudson

Related Articles

With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)

Real estate stocks push up this week as U.S.-China trade tensions ease

416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case

Michael Shvo with 711 5th Avenue (Credit: Getty Images, and Google Maps)

Michael Shvo seeking $600M to refinance Coca-Cola Building

4650 Broadway (Credit: Google Maps)

Inwood site goes for twice what seller paid last year

Softbank CEO Masayoshi Son (Credit: Getty Images)

SoftBank’s $3B payout to WeWork’s investors is delayed

WeWork co-CEOs Artie Minson and Sebastian Gunningham

WeWork under pressure as losses soar to $1.25B

John Legere (Credit: Getty Images)

WeWork reportedly in talks to hire T-Mobile exec as CEO

195 Broadway and L&L Holding's David Levinson and Robert Lapidus (Credit: Google Maps and L&L Holding)

L&L, Safehold lock in $592M in financing for Downtown building