The plummeting pound a new incentive for Hong Kong real estate investors

The Hong Kong investor trend shifts to second tier cities such as Manchester and Liverpool
Rare-to-the-market boutique London developments are back on the radar
All properties in the UK are now 20% cheaper due to crash in sterling
2016-11-11 11:00 2621

HONG KONG, Nov. 11, 2016 /PRNewswire/ -- The plummeting pound is no longer news but the extent of the decline is still making headlines. We are witnessing the largest depreciation of sterling in over thirty years, triggered by the United Kingdom's decision to leave the European Union.

Whilst detrimental for some, Adam Simmons from Hong Kong property firm Platinum Rise, puts it simply, "For Hong Kong real estate investors, where most people keep their savings in dollars, an unprecedented opportunity has revealed itself. A stable stock market, low transaction costs and an unrivalled rule of law underline the ongoing interest in the UK.  And now, purchasing anything in the UK is 20% cheaper than it was six months ago, including real estate."

The unabated trend of purchasing UK property has therefore had a further boost for overseas investors who have longed to enter the market or expand their portfolio in this historically safe investment location.

Coupled with the disincentives of other international markets, such as Australia and Canada's taxes on foreign property investors, the UK sits atop the world as a leading investment destination.

"Hong Kong has seen no shortage in property launches over the last decade, but the trend is evolving. Where once the local investors focused on gleaming London towers, in our experience the Hong Kong market has become better informed as to the benefits of secondary cities such as Manchester and Liverpool as well as rare-to-market boutique developments in the capital," continues Simmons.

Manchester, the powerhouse city of the north, is going through unprecedented development. The city is the centre point of the UK governments strategy to create a regional programme to unite the country's northern cities through an economic stratum that can compete with London and the South East.

Meanwhile, Liverpool, most famous for being the home of the Beatles, is on the north west coast and only 40 minutes from Manchester. It remains one of the cheapest second tier cities where properties at Platinum Rise's upcoming launch start at just GBP120,000, with legal fees covered.

"We also recognise that London is still a focal point for investors, and rightly so, however the rental and secondary sales market, which investors should take into consideration, tend to prefer smaller, more unusual or unique properties. On this basis, we have actively sought out boutique developments that are not available elsewhere and we believe these will provide the best longer-term returns for Hong Kong investors. And by investing now, the currency play could provide an accelerated profit," says Simmons.

Platinum Rise

Platinum Rise is an investment property company headquartered in Hong Kong that offers both financing solutions for global developers and investment property for individual or institutional investors. Having recently expanded its sales team of professionals, the company offers a full-circle service to its customers and partners. They walk their clients through the process of sourcing, financing and managing investment real estate.

Platinum Rise is partnered with a diverse range of developers across the residential, commercial, health care and student accommodation sectors. The company also liaises with a number of Family Offices, Private Funds and Financial Institutions, through which they tailor blend profitable portfolios.  This also creates a symbiotic relationship to assist developers with managed Construction financing.

Source: Platinum Rise