China has suddenly stopped buying foreign property
The Chinese pulled 84% of their overseas property investments globally in the first half of 2017 after the government began officially frowning on a “negative list” of foreign investments that were attracting Chinese cash, according to Morgan Stanley.
The Chinese were 25% of buyers of central London commercial property in 2016, a recent note to clients from Morgan Stanley’s research team said.
The sudden absence of China explains, in part, the recent softness in the London property market. Residential prices in London began falling in the last few months.
The Royal Institute of Chartered Surveyors currently describes the London property market as “stagnant.”