Singapore Property Market to Benefit From Brexit
Property Guru, Photo Credit to Property Guru
clock 12-04-2019
hit 373

A turning point in the United Kingdom’s history, the Brexit referendum held in 2016 brought about far-reaching effects – they could even be felt here in Singapore, according to a blog post by OrangeTee.


This comes as the prospect of Brexit has cast a negative impact on the London property market’s status as a safe haven investment for overseas buyers, while boosting that of Singapore.

The British Property Federation publication Who Buys New Homes In London And Why? showed that 49 percent of prime central London properties are purchased by foreign buyers.

“But the prospect of Brexit has dampened demand from this segment.”

UK real estate prices saw house prices increase by just 0.1% year-on-year in January, the slowest in six years, and only rose only by 0.4% in February.

OrangeTee noted that falling prices and a drop in the number of sales transactions “is a clear indication that foreign buyers are moving away. Or, at best, they are adopting a “wait and watch attitude”.

And with Singapore’s property market being a favourite of foreign buyers for many years, London’s loss could turn into Singapore’s gain.

OrangeTee said there are various factors that make a real estate investment in Singapore an attractive proposition for overseas buyers. These include the city-state’s stable economy, strong governance and rule of law, world-class infrastructure and strong demand for real estate.

Moreover, Singapore’s Property Price Index showed that prices of private homes have remained relatively flat over the last three quarters of 2018, before dropping by 0.9 percent in the first quarter of 2019.

Luxury home prices declined by an even bigger percentage, with the Urban Redevelopment Authority reporting that prices of non-landed private homes within the Core Central Region fell by 2.9% in Q1 2019.

“Conditions in the real estate market in Singapore are just right for overseas buyers. Prices are down, and a purchase made at current valuations offers the likelihood of gains.”




WHAT DO YOU FEEL ABOUT THIS?

0
LOVE
0
HAPPY
0
SURPRISED
0
SAD
0
ANGRY


COMMENTS
Use a Facebook account to add a comment, subject to Facebook's Terms of Service and Privacy Policy. Your Facebook name, photo & other personal information you make public on Facebook will appear with your comment.

SIGN UP NEWSLETTER

logo
Monthly Column
The staple of your property-related materials. It's all about being ahead of the game and with The Column, you get carefully selected information that will keep you informed and running with the pack. The best news, articles and properties on the market from the Property Hunter portal, conveniently wrapped and ready, just for you.

logo
Weekly Window
Your weekly dose of what's hot and what's not in property. The window is your view into the realm of real estate in Malaysia, curated from our portal based on the most popular pieces over the week. For those who just can't get enough, this is for you. Ain't nobody got time for dailies anymore, weekly is the new daily.