Tower Hamlets has seen the sharpest rise in homes owned by Chinese nationals anywhere in London since 2020 according to latest research from Benham and Reeves.
With the UK government approving plans for China’s controversial new “mega embassy” at Royal Mint Court the London lettings and estate agent analysed the number of homes owned by Chinese and Hong Kong nationals across the capital, assessing how levels of foreign ownership have changed over the past five years.
The former Royal Mint Court site, on the eastern edge of the City of London and within Tower Hamlets, was bought by the Chinese government in May 2018 for £255m.
Plans for the site to become China’s largest diplomatic mission in Europe were approved yesterday, despite opposition from local residents and previous security concerns.
CLEAR MARGIN
Across London as a whole, the number of homes owned by Chinese nationals has risen by 85% since 2020, equivalent to an additional 3,746 properties.
Over the same period, homeownership among Hong Kong nationals increased by 23%, or 2,372 homes.
Tower Hamlets stands out by a clear margin. The number of homes owned by Chinese nationals in the borough has increased by 1,119 over five years, far ahead of the next largest rise of 379 homes in Hammersmith and Fulham.
Ownership by Hong Kong nationals in Tower Hamlets has also grown sharply, up by 754 homes, compared with the next highest increase of 204 in Westminster.
DESTINATION OF CHOICE
Marc von Grundherr (main picture, inset), director of Benham and Reeves, says: “Since the purchase of the Royal Mint Court site by the Chinese government, we’ve seen a notable increase in buyer activity from both Chinese and Hong Kong nationals across Tower Hamlets.
“The borough was already popular due to Canary Wharf and the presence of HSBC’s headquarters.
“While HSBC may now be relocating to the City, Tower Hamlets remains a destination of choice, particularly with growing anticipation of the mega embassy which has now been approved.
NEW-BUILD PREFERENCE
And he adds: “Many of these buyers are focusing on areas close to the borough’s border with the City of London, where the Royal Mint site is located, and new-build homes remain the preferred property type.
“These properties don’t come cheap and over the last 12 months, average new-build values in this part of the borough have commanded premiums of between 46% and 77% when compared to existing homes.
“This reflects the lifestyle benefits, on-site amenities, and security features that new developments provide, all of which tend to resonate strongly with buyers from China and Hong Kong.”
