With the current global recession, investors are zeroing in on secure places where home values are less likely to be severely impacted. While long-time favorites like New York, Sydney, Melbourne and London are maintaining their strong appeals, upcoming destinations like Lisbon have also launched incentives to attract foreign investments.
The United Kingdom
In the realm of real estate, the UK market has been generating sustained, long-term growth for global investors. James Thomas, Director of Invest and Consult Ltd, points to two major factors that support its popularity.
“In terms of security, Britain’s free market economy is the sixth-largest national economy in the world and the third-largest in Europe. Its diversified economic pillars and labor market, spanning multiple industries, continue to fuel the property market,” he says. In addition to the internationally recognized status of the pound sterling as a ‘safe haven’ currency, he also points out the UK boasts a clear and comprehensive legal system, where “the British law is often regarded as the best in the world”.
Commenting on the quality of life, Thomas underscores Britain’s extensive and well-funded education sector. With more than 500,000 international students enrolling each year, it is one of the most popular destinations for studying abroad. Its higher education degrees and qualifications are recognized by employers and academics worldwide.
“The four countries of the UK – England, Scotland, Northern Ireland, and Wales – constitute multicultural, cosmopolitan cities that offer a rich variety of cultures, languages and faiths,” he adds. “The robust transport links facilitate connection with different parts of the country. In London alone, there are five international airports providing instant, swift connections to mainland Europe.”
Portugal
In continental Europe, Portugal has caught increased attention for its immigration-friendly policies, says Mei Han Wong, Executive Director and Head of International Residential Sales of Knight Frank Hong Kong. She points out that the high quality of life and the low cost of living in Portugal, alongside its cultural richness, safe and solid economic climate and congenial climate, are major attractions for foreign investors.
Fast becoming a preferred choice of relocation and retirement, Portugal has one of the lowest cost of living in the EU. “Even in highly-appealing tourism cities like Lisbon, the real estate prices are eminently affordable, with prime properties averaging €8,000/square meter or €745/square foot,” Wong says. “With extensive airports – including the new Montijo Airport project – and low-cost airlines options, Portugal is readily accessible and is merely a few hours away from most of the Western European countries.”
Wong highlights Portugal government’s initiative in attracting investors. Established in 2012, Portugal’s Golden Residence Permit Program (ARI) – also known as the Golden Visa Program – enables non-EU/EEA citizens to obtain a special residence permit in exchange for a 5-year investment in the country.
“The most popular option is through a €500,000 investment into real estate,” she notes. “Since launched, 8,466 applicants have leveraged the opportune time to purchase property in Portugal, amounting to a total of €5.1 billion investment.”
Australia
Famed for its multicultural society, bustling cities and picturesque beaches, Australia is a popular choice for investors as well as for intending emigrants. Amongst its state capitals, Melbourne prides itself on the enviable status as the world’s most liveable city for 76 years in a row. Along with the latest special visa arrangements for Hongkongers, Wellman Cheng, Managing Director of Austlink Oversea Property, points out that there is a solid demand for properties in the market.
There is a strong demand for rental properties, and the vacancy rate in major cities has always been low. Chris Leung, General Manager of Global Asset Group, points out that in major cities, investors can expect a vacancy rate as low as 5%, while the rental yield will be as high as 5% or even more.
“The similarity in weather and the minimal time difference between Australia and Hong Kong mean that it is not difficult to make the necessary adjustments,” Cheng adds. “Furthermore, Australia is a mere overnight flight away.”
Leung also points out that Australia’s education system and standards are highly regarded. “It is one of the most popular countries for studying abroad, with some of the best universities in the world, including University of Melbourne; University of Sydney; Monash University; and more,” Leung says. “The average tuition fee in Australia is lower than that of Britain.”
