London property developer taps Chinese market

Berkeley Group, a major London real estate developer, opened its first marketing suite in Beijing to attract Chinese investors, underlining the China market's growing significance for the UK.

"With the growing interest of Chinese investors in the UK real estate market, we feel it is time to provide a place where investors can visit and get introduced to Berkeley products in Beijing," said Paul Bennett, international business development director of Berkeley Group.

Jones Lang LaSalle Incorporated, a global real estate services and investment management company, said in a report that in the first half of this year overseas investors contributed to nearly 80 percent of new home transactions in London.

Jones Lang LaSalle is a long-term partner of Berkeley and houses Berkeley's new marketing suite.

According to Bennett, London has unique advantages over other foreign property destinations as no capital gains tax or property tax is imposed, though there is a low rental income tax.

The UK's well-established legal system, sterling's depreciation against the yuan, and an under supply of residential properties in London all ensure a good capital return for Chinese investors.