Impact on Property Market
[Updated on 12 July,2016]
A recent Savills’ report argues that Brexit has led to a change in perceptions of world risk in the global real estate market, affecting different markets to different degrees. Investors are increasingly seeking “safe havens” for their capital and real estate is increasingly seen as a secure option during turbulent times, with a decreasing emphasis on capital growth, as the opportunity cost of money turns negative real estate gains an exceptional status providing tenants continue to pay rent. This shift towards real estate will benefit certain markets and jurisdictions above others, with property yields being paid close attention to. Those with more capital or are from a Yen or Dollar based investment background, may find new opportunities due to the falling pound and euro, but will still be hampered by a fear of economic downturns. The result is overall, investors are now paying close attention to both quality and value. Read more>>
DTZ/Cushman & Wakefield
The impact of Brexit on Sino-British property investment provides a mixed bag with both opportunities and risks. According to a report from DTZ/Cushman & Wakefield, Chinese investors in the British property market may be buoyed by the opportunities stemming from a weaker pound against the rising RMB. Nonetheless, continuing uncertainty about the UK’s post EU future may push some investors to hold back and sit on the fence and watch developments carefully. Likewise, a weaker pound and potential tighter immigration laws could lead to soaring construction costs and a drop in demand. However, despite both the opportunities and risks the report concludes relations between the UK and China will remain “business as usual” in the long run and Britain will continue to remain an attractive proposition for Chinese investors. Read more>>
Jones Lang Lasalle:
In the aftermath of the UK deciding to exit the European Union, the markets are volatile and the value of the pound has declined sharply. With considerable uncertainly and no real precedent, Asia Pacific real estate investors and corporate occupiers are looking to mitigate risk.
According to JLL experts, Brexit could bring short term opportunity for international investors although market sentiment will remain cautious. In Asia Pacific, local occupiers and multinational companies serving domestic economies will help to insulate the region from volatility. Read more>>