There is no doubt that Manchester is the flag ship city of the government’s Northern Powerhouse initiative and plans to try and turn the city into a ‘London of the North’ don’t seem as fanciful as it sounds, especially to Chinese investors.
China has definitely bought into the idea of Manchester and everything it stands for and Chinese investors are not only buying up properties in the city, they’re helping to build them as well.
To illustrate this, Hong Kong Homes, a leading Chinese property company, are already playing a pro-active part in the Manchester and North West property market, selling over 400 flats to Chinese clients. Attracted by the huge number of infrastructure projects in the city and the planned HS2 railway development, Chinese investors believe that Manchester has a strong and robust economic future and see the city has a more profitable alternative to investing in London.
Growing student and young professional market
Many Chinese investors will actually never come to the UK themselves and some will be investing in buy-to-let properties and student accommodation for their children to study at university here.
Manchester is home to some of the top universities in the UK and is a big draw for students from the Far East. The combination of cheaper property values in the north, the low rate of sterling since Brexit, and the growing student and young professional market in the city is making Chinese investors look closely at Manchester has a safe bet for purchasing property and achieving very attractive rental returns.
Interestingly, at a recent development called the Dock Office in Salford Quays, around 25% of the apartments were sold to Chinese clients with a view to renting them out. Because of the high prices in London, Chinese investors know that they can achieve higher rental yields in cities like Manchester and with a good chance of capital growth too, they really can’t get enough of the city!
Huge investment in Manchester’s Airport City
The icing on the cake for Manchester has been the £800 million investment by the Beijing Engineering Construction Group in Manchester’s Airport City. Now with regular direct flights to Beijing and Hong Kong, there is a planned hub for Chinese firms to set up which is sure to create greater ties between the UK and China.
Manchester now has various apartment blocks that have been built with Chinese money and which are also being bought by Chinese investors. And if that wasn’t enough, even a fair chunk of Manchester City Football club has been sold to the Chinese!
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There are approximately 300 million middle-class Chinese people who have money to spend – that’s the entire population of the United States. Manchester is doing a superb job of attracting some of this money to build its own status as a world leading city.
Are you wondering what all the fuss is about?
We have some superb property investment opportunities in Manchester so contact us now on 0333 3001 888 and we will explain why it’s not just hype!