Tower Hamlets sees sharp rise in Chinese homeownership as UK moves to approve China’s ‘mega embassy’

The latest research by London lettings and estate agent, Benham and Reeves, has revealed that the London Borough of Tower Hamlets has seen by far the largest increase in the number of homes owned by Chinese foreign nationals since 2020, as the UK Government prepares to approve plans for China’s controversial new London ‘mega embassy’ at Royal Mint Court.

Benham and Reeves analysed the number of homes owned by both Chinese and Hong Kong nationals across the London market, breaking the data down by borough and assessing how levels of foreign ownership have changed over the last five years.

The former Royal Mint Court site, located on the eastern edge of the City of London and just within the boundary of Tower Hamlets, was purchased by the Chinese government in May 2018 for £255 million, with an official transfer ceremony held on 18 May that year.

The site has since been earmarked to become China’s largest diplomatic mission in Europe and, according to recent reports, Prime Minister Keir Starmer is expected to approve the development, despite opposition from local residents and security concerns raised in the past.

The figures* from Benham and Reeves show that across London as a whole, the number of homes owned by Chinese nationals has increased by 85% over the last five years (2020-2025), equating to 3,746 more homes, highlighting a sharp rise in buyer activity from mainland China.

Over the same period, the number of homes owned by Hong Kong nationals has increased by a more measured but still significant 23%, or 2,372 homes.

When breaking the market down by borough, it is Tower Hamlets, home to the proposed mega embassy, that has seen the most pronounced growth.

Across the borough, the number of homes owned by Chinese nationals has increased by 1,119 over the last five years, far exceeding the next largest increase of 379 homes recorded in Hammersmith and Fulham.

At the same time, the number of homes owned by Hong Kong nationals in Tower Hamlets has risen by 754 over the same period, again well ahead of the next largest increase of 204 homes seen in Westminster.

Marc von Grundherr, Director of Benham and Reeves, commented:

“Since the purchase of the Royal Mint Court site by the Chinese government, we’ve seen a notable increase in buyer activity from both Chinese and Hong Kong nationals across Tower Hamlets. The borough was already popular due to Canary Wharf and the presence of HSBC’s headquarters. While the bank may now be relocating to the City, Tower Hamlets remains a destination of choice, particularly with growing anticipation that the mega embassy will finally receive planning approval.

Many of these buyers are focusing on areas close to the borough’s border with the City of London, where the Royal Mint site is located, and new-build homes remain the preferred property type.

These properties don’t come cheap and over the last 12 months, average new-build values in this part of the borough have commanded premiums of between 46% and 77% when compared to existing homes**.

This reflects the lifestyle benefits, on-site amenities, and security features that new developments provide, all of which tend to resonate strongly with buyers from China and Hong Kong.”