Chinese Investment in Liverpool

Home to the oldest and longest-standing Chinese community in the entirety of Europe, The Liverpool China partnership has always been a strong one, and one that is set to continue growing throughout 2020 and into the future. An already growing level of interest paired with exciting and ground-breaking development projects make it a continuing bond that could make the city a golden example of successful Chinese investment in the UK.

If you’re interested in learning more, this blog contains information on Chinese investment in the UK, and Chinese investment in Liverpool in particular, as the North becomes an increasingly popular spot to look out for on the global investment map. Keep reading to learn more.

Following the relaxation of the trade and investment restrictions by President Xi Jinping, interest in the UK property market has already begun to climb, and in fact rocketed after a dip in the 2017 period where it was difficult to invest internationally for Chinese property buyers.

With overseas buyers seeing the long-term investment benefits and promise of allocating their capital into a Northern city rather than just sticking with the popularity of London’s real estate sector, interest has soared in recent years.

In 2018, for example, the New Statesman reported that Chinese buyer enquires into Manchester through the website Juwai had increased by 255.6% in January when compared to the month of the previous year, with Liverpool rising by 160%, too. This shows just how popular Chinese investment in UK property is becoming. London, on the other hand, was down 48.5%, which is perhaps indicative of the market, and the positive trends the North is continuing to enjoy.

International investors (and Chinese investors specifically) are beginning to look northwards in the UK for investment opportunities, away from the expensive south and in the capital London. Chinese property investors are increasingly becoming interested in northern markets, such as Liverpool and Manchester.

Naturally, being the tourist hub of the UK and the largest city in the country by far, buyers will quickly look towards the capital city of London when thinking about Chinese investment in the UK. However, particularly since the market stagnation following the Brexit referendum, and also for other reasons such as high house prices (and similarly low rental yield averages in the capital), interest is beginning to shift up northwards for the future, as is the case with many UK-based investors and businesses, too.

Chinese investment in London is starting to slow in favour of the Northern markets, as they out-perform areas in the south with buy-to-let property types like student accommodation.

When thinking of investment and business in Northern cities such as Liverpool and Manchester, both are viable and potentially lucrative options. Liverpool currently has the edge in terms of rental yield, with many of the best postcode averages in the country, according to Totally Money’s Buy to Let map for 2019/20.

One of the strongest links between the Liverpool China partnership lies in its academic ties, with examples including the University of Liverpool having a direct sister school in China, encouraging international learning, and also the North West city generally having one of the largest Chinese student populations in the entirety of the UK.

The BBC reported in January 2020 that “The University of Liverpool has been one of the most successful in recruiting from China, which now provides almost one in five of its students”.

As a result of this continuing and thriving relationship, it should come as no surprise that a significant interest and draw for Chinese investment in Liverpool lies in the student property market. Student property as an investment prospect is one of the most lucrative and exciting in the UK currently.

A growing number of students looking for accommodation matched with a lower-than-average purchase price and high rental yield average make it an excellent strategy for new and experienced investors alike.

Property investment is a lucrative venture for those with the capital, particularly if choosing to invest in a thriving Northern city such as Liverpool. However, as with any investment venture, there are risks involved.

Chinese home buyers need to be wary of the investment projects that they’re looking into for the future from those looking to sell property to overseas investors. In order to best protect an investor’s portfolio and prospects looking forward, RWinvest only works with developers with a proven track record, and with past completed developments.

By working with only the best developers, we can reassure investors who are investing in an off-plan development. By looking at a developer’s recently completed and tenanted apartment buildings nearby, investors can also get a clear grasp and concept of what their luxury slice of the city will look like upon completion.

Connecting investors on a global scale with opportunities that they otherwise may never have been able to access, modern technology (and its increasing adoption in the property investment industry) allows those to view properties and developments in Liverpool even from afar.

Again, for Chinese property investors that are interested in investing in a UK area, we at RWinvest offer a range of services, packages and information, such as our virtual reality viewings – the next best thing in terms of immersion for hands-off investors and Chinese home investors.