I saw an interesting documentary last night on bbc world, that showed people from Hong Kong and mainland China and their investments in London property. London property is perceived to be cheap and safe. They are using property as a commodity and thus do not want the property to be rented as it depreciates it faster and they may need to sell it rapidly. Compared with Hong Kong when you pay 350,000 for tiny studio flat property in London is cheap and seems to be appreciating quickly (partly driven by demand from Hong Kong/China). They showed sections of the Hong Kong skyline at night, and many blocks are entirely empty as they are just owned by speculators who are only interested in the value of the apartment - rather than what its for ie living in.

I'm not really sure what the best option is given this environment.. it seems the bubble (if indeed there is one) is still a way off bursting.