Manchester and Liverpool have been drawing attention from property investors, both locally and across the world, as the second-tier UK cities outperform a pricier London. 

Platinum Rise Capital Partners, a Hong-Kong based private equity firm, said that it is relying on these two cities, as they remain more affordable when compared to the capital. It is currently working on two projects in Liverpool and Manchester, the company said. 

“In terms of regional cities, Liverpool and Manchester offer very competitive prices compared to London,” said Adam Simmons, co-founder and co-chief executive officer of Platinum Rise. The firm’s interests vary from property, to project management and manufacturing of prefabricated building materials. 

Property prices in the northwest cities of Manchester and Liverpool have risen by 4%, while in London, prices were down by 2.5% year-to-date, as per recent figures from Savills. 

In 2019, the average price of an apartment in Manchester is £229,129, almost 70% lower than London’s £717,731, with Liverpool still the cheapest at £134,963. 

According to Platinum Rise, the buyers of their development projects spread over the secondary cities were evenly split between locals and foreigners. The majority of overseas investors hailed from Hong Kong, Singapore, Malaysia, Japan and Thailand. 

“People are keen because there’s a lot of foreign and government investment going into these areas,” said co-founder and co-CEO of the firm, Murray Holdgate. 

“Regional cities are definitely more attractive than London for us mainly due to price point, growth and yields.”

Far East Consortium International is another Hong Kong-based firm with interests in Manchester. The latest data reveals that both Manchester and Liverpool are currently drawing major attention from foreign investors. 

During the period stretching April-September 2019, the amount of inquiries from Chinese investors for Liverpool and Manchester property soared twice as much as in the first quarter, according to Juawi.com, a Chinese website for overseas property investors. 

“Both Liverpool and Manchester make a strong case for students and investors who appreciate the lower entry price compared to London and the infrastructure investments,” said executive chairman of the website Georg Chmiel. 

“We expect relatively strong interest in Manchester and Liverpool to continue into 2020,” he added.