Deutsche Bank has published a new report on the London housing market which breaks down the origin of purchasers by price range in new build sales in prime London property.
At the low end, the dominant share of buyers is domestic UK buyers, accounting for over 70 per cent of the less than £450 per square foot (sft) and the £450-700 per sft market.
But at the very highest high end, UK-based purchasers represent only around 10 per cent. A large proportion of the buyers, around a third, are Eastern European or Russian. Chinese and Middle Eastern buyers are also quite significant. Chinese buyers actually make up a bigger purchase of the slightly cheaper ranges, including the ranges £700-£1000 per sft, £1000-£1500 per sqf and £1500-£2000 per sft, while Middle East and North African purchasers edge slightly ahead of the Chinese in the £2000 plus per sft range
Mainly, these new build home purchasers are looking for investment opportunities though some are buying for their children. Sixty-five per cent have bought for investment/rental, 33 per cent have bought for their children and investment, or vice versa, and just two per cent have bought for second homes.
Source: Deutsche Bank/Knight Frank
