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Hong Kong developers are betting on London for its high rental yields amid BN (O) visa scheme, says K&K Properties boss
- The developer’s London portfolio generates a rental yield of 4.6 per cent, which compares with about 3 to 3.5 per cent in other big European cities
- Leasing inquiries in K&K’s London office portfolio have increased 20 per cent in the last two months as the Covid-19 situation improved, says CEO Kino Law
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Hong Kong developers are increasing their investments in London, betting on higher yields as more Hongkongers head to the UK under the British National (Overseas) visa scheme.
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There has been a surge of Hong Kong money going into the UK’s property markets in the last two years, according to Kino Law, chief executive officer and chairman of K&K Property Holdings.
This is probably because of the British capital’s higher rental returns compared to other gateway cities, and the relaxation of immigration policy for BN (O) passport holders, he said.
“The trend is [mainly] due to diversification and to create a more healthy investment portfolio to help the developers to fund their projects and create a more healthy balance sheet,” said Law.
“Hong Kong developers, from my perspective, always very [much] have an international and global perspective.”
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Hong Kong migrants to UK struggle to adapt, many willing to accept lower pay and job changes
Hong Kong migrants to UK struggle to adapt, many willing to accept lower pay and job changes
Hong Kong developers that have invested in London included Sun Hung Kai Properties, CK Asset Holdings, New World Development, Link Reit and Far East Consortium.
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