Property experts in London are warning that Chinese buyers have started selling their properties (many of which were bought without being seen) to take home profits as the Chinese stock market continues to struggle and the economy seemingly slows. Even those who own completed homes have kept them empty rather than let them out as they seek to quickly flip them on. This is concerning as the last year has seen other traditional international buyers, such as Russian and Brazilian, of London property reduce their investments in the prime markets.
This comes just as Chinese president Xi Jinping’s recent four day visit to Britain brought promises of cementing economic ties between the two countries. This makes one wonder whether coupled with the impact of China dumping cheap steel on the global markets, president Jinping’s promises may be more mute. Prime minster David Cameron was recently heard boasting that the four-day visit will unlock £30billion in trade deals, creating 4,000 jobs in Britain. He faces continued criticism for have turned a blind eye to claims of human rights violations.
Chinese buyers have invested millions of pounds in Britain’s property market, particularly in London, where prices have impressively risen since the credit crisis of 2007. Agents have confirmed that the tide has seemingly turned and Chinese investors are more likely to be selling properties in London now. Many of these investors bought new build properties in London following a series of tours hosted by London lawyers and estate agents in China.