(Yicai Global) Aug. 16 -- In contrast to traditional deposits in banks, more and more Chinese buyers become keen on properties in global cities like London and New York to save their money in the 'property bank.' 

Per the incomplete data from the Securities Daily, since May 11, 2017, over the mere 90 days, Chinese buyers including China-invested enterprises and Hong Kong-invested ones have spent over GBP3.6 billion (USD4.7 billion), buying real estates in London. Calculated by the exchange rate then, these funds total as much as CNY31.7 billion (USD4.7 billion).

The impact from Brexit as well as the weak pound offer foreign investors the best chance for buying real estate, an executive in a private global property consulting firm told the Securities Daily. Chinese buyers mainly invest in commercial properties and residences in overseas property markets, and major China-invested companies now are crowding into London to buy properties while the exchange rate is favorable. Though China's watchdogs are applying stricter regulations over overseas investments, given the investors' tendency for asset allocation, this trend may show fluctuations, but it will not disappear, he said.

China is the largest investor in the UK's real estate market. Per the report of commercial real estate data company Costar, in the first quarter of 2017, China has overshined the US and become the largest investor of the UK's property market.

China's rapid economic development in recent years has led to growing high-net-value groups, for whom overseas asset allocation becomes a major source of demand. Per the report jointly published by China Merchants Bank Co. [SHA:600036; HK:3968] and Bain & Company, the number of Chinese people owning at least CNY10 million investable assets has now increased to 1.58 million from the mere 180,000 about 10 years ago. The total personal investable assets nationwide now have reached CNY165 trillion, with the richest families that account for one percent of the total population now owning one third of the national wealth.

Per the forecast report issued by Hometrack, a UK real estate data analysis company, though impacted by factors like Brexit, hung parliament and terrorist attacks, in 2017, the housing price of the UK still rose by 6 percent to 7 percent on the whole, even higher than the predicted 4 percent suggested in December 2016 by the same company. Nevertheless, the performance of London's housing price still remained moderate, with only 2.9 percent increase in the first half of 2017.