BREXIT and UK property market – Wall Street Journal

This is about BREXIT. Britain will be deciding on whether or not to leave European Union. In a report in Wall Street Journal, it has been predicted that should Britons vote to leave the European Union on Thursday, real-estate prices—from homes to London office towers will drop. The potential positive for the real estate sector would be if Sterling depreciates as widely expected, then this may be the start of property buying by many who have retreated. If this happens, the market best positioned would be London which has been a favourite for many international investors. Yes, even for Malaysian investors and developers too. 
According to Faisal Durrani, head of research at broker Cluttons LLP, buying opportunities will rise with the fall in sterling’s value. He was referring in particular to high-end homes in central London for which is considered by overseas buyers as a safe-haven investment. Within the past one year however, the demand for Prime Central London homes has dropped because of reasons fromlow oil price, slowing global economic growth and stock market shocks. Beyond just transactions, prices are also falling. Mr. Durrani further shared that nearly half of home buyers in prime London are foreign and Mideast and Asian investors account for 35 – 40 percent of all deals.
Some other predictions include that from the U.K. Treasury Chief George Osborne who warned that U.K. house prices would fall up to 18 percent if BREXIT happens. According to Standard & Poor’s Corp, commercial property prices will likely fall is Britons vote to leave. David Hutchings, head of EMEA Investment Strategy at broker Cushman & Wakefield said that if sterling drops, long-term investors will enter the market. In fact there has been many recent discussions between pension funds, sovereign-wealth funds and high-net-worth individuals, Mr. Hutchings said. I do not think I can qualify as a London property buyer yet. However, I have a feeling that BREXIT will happen because the vote is like an ‘independence’ type of vote. Let’s hope for the best whether or not it happens because Malaysian investors have a lot at stake in London too. Happy following.
written on 21 June 2016
next suggested article:  Greater London, severely unaffordable.Start thinking Greater KL