Overseas buyers purchased central London new-build property
with a value of £2.2 billion (around $3.5 billion) in 2012. According to the recentInternational Residential Investment in
London report from global property firmKnight Frank, this was up 22 per
cent on 2011.

A total of 52 nationalities bought new-build property in
central London last year. The most active overseas buyers (ranked by number of
transactions) being from Singapore (22 per cent), Hong Kong (16 per cent) and
China (5 per cent), Malaysia (4 per cent) and Russia (3 per cent). However, UK
buyers remain in the majority, with a 27 per cent market share.

Knight Frank says that expects the core overseas markets to
retain their appetite to buy in central London. It also forecasts increased
investment activity from China, particularly if restrictions on overseas
capital transfer are eased. Turkey will continue to be a key buyer market: its
economy has outperformed crisis-hit western Europe and many of its citizens
have links with the UK. Indonesia is also a country to watch.

“Overseas investors … are attracted to London due to advantageous currency values, the
opportunity to invest in a tangible asset with the prospect of long-term strong
capital appreciation, and the recognition that London continues to offer world-leading
educational and cultural facilities,” Neil Batty, head of international project
marketing at Knight Frank, said in a statement.