Commercial property investment in central London reached £11.5bn during the first half of 2017.
Savills’ data reveals that £2.352bn was invested in central London’s commercial property market in July, a 24% increase on last year.
The sale of 20 Fenchurch Street, the Walkie Talkie, for £1.28bn to Hong Kong firm Infinitus Property Investment, accounted for 61% of the City’s turnover, making July the strongest month since March 2007.
During the same period, £252m was transacted in the West End.
Asian investors accounted for 63% of total City turnover this year, followed by European investors (17%) and UK investors (11%).
Stephen Down, head of Savills central London investment team, said that the first half of the year saw central London investment increase 12.3% on the same period last year and that investment volumes “may well surpass those of 2016”.
“Although the restrictions announced earlier in August by the Chinese government will reduce real estate investment from mainland Chinese property developers and institutions, investors from Hong Kong, who have been particularly busy in the market in the past year, are likely to continue to be active, however, we have noticed their buying criteria has become increasingly selective,” Down said.
Down said more stock is expected to come on to the market this year and if priced correctly, strong turnover in activity is anticipated over the next three to four months.
Source: Property Week