Chinese buyers prop up London property market

Chinese investors are buying up properties overseas. London has become one of their most favoured destinations. That comes as a welcome boost for the local real estate sector.

It used to be Russians, snapping up prized real estate in London. Now Asian home buyers, especially those from China, are the big spenders in London's property market.

Industry insiders say a major attraction of the London property market is its high and stable rental returns, as much as five times the level seen in Beijing.

"There are three major types of Chinese buyers. One is whose children study in the UK. The second type are potential immigrants. The third type of buyers are investors, as London has high and steadily growing rents." said Ice Wang, Head of China Desk of Winkworth.

In addition, industry insiders say the transparent transaction process and good living standard in London are also factors behind Chinese buyers'enthusiasm.