Homeowners in London could see the value of their home rise significantly in the next few years, not just because of a housing shortage in relation to domestic demand, but also due to rising demand among overseas nationals – London’s property market is benefitting from the surge in global wealth creation, particularly in Asia.

Over £800 million worth of property – equivalent to around 2,500 homes in London – were sold at exhibitions in Singapore, Kuala Lumpur and Hong Kong last year, according to research by CB Richard Ellis (CBRE).

Jennet Siebrits, Head of Residential Research UK for CB Richard Ellis, estimates that between five and 10 percent of buyers were Chinese, although she expects this figure to grow, as the London property market looks like an increasingly attractive investment proposition.

The report said that the majority of Asian buyers are investors seeking to cash in on long term capital growth as well as rising rental returns. Most investors are looking in established markets, such as Canary Wharf and the City, as well as regeneration areas where transport links are improving.

Kidbrook Village in SE3 and SE9, one of the largest regeneration schemes in Europe, is attracting a lot of attention from Asian buyers.

Berkelely Homes, the developer behind the project, have very much factored Asian property investors into their marketing strategy. The housebuilder launched the first private new build homes at Kidbrooke Village for sale in Asia six months ago. The first new homes, starting from £207,000, will only be made available to buy in the UK from March.

The development will feature over 4,800 new homes, approximately 300,000sqft of commercial and retail space, community facilities, integrated healthcare facilities, sports pitches, a hotel and a new transport interchange. The project will take around 20 years to complete.

“The development will create a new vibrant destination in which people from all backgrounds and areas of London will aspire to work and live,” said Paul Vallone of Berkeley Homes.

Elsewhere, Weston Homes will be launching its new King’s Island development located at the former William King Flour Mill site at Uxbridge in March; a gated development surrounded by the Grand Union Canal and River Colne.

King’s Island includes 24 three and four bedroom new build and listed conversion family houses, priced from £499,995, along with 127 one and two bedroom new build apartments.

Weston Homes will be actively marketing King’s Island in Asia, with an exhibition in Hong Kong and Macau in March.

Bob Weston, Weston Homes Chairman and Chief Executive, commented: “There is an increasing amount of interest from Asian buyers in the greater London area and we are holding a King’s Island exhibition in Hong Kong and Macau to showcase this new development to potential investors.”