Though a Leave vote would see the British pound plummet, a Remain vote may encourage UK home buying amongst Singaporeans.
A win by the Remain camp in Britain’s European Union referendum may spur UK residential property investment among Singaporeans, reported The Straits Times.
This comes as many potential buyers here have been taking a wait-and-see approach over the last few months. Notably, Central London saw prime property sales drop by over 50 percent. Market experts, however, believe volumes could quickly recover should Britain stay in the EU.
Management consultant Jimson Cheng revealed that while he is not selling his Central London condominium, he has opted not to make any further investments. “I’ve friends with over 10 London properties who have decided to liquidate a few due to the uncertainty, and as prices are higher now.”
With housing demand in London far exceeding supply, the advice most people have given him “is to hang on to your unit”, he said.
Regional Director of London firm Strawberry Star Group, Doris Tan, attributed the slower sales registered since the start of 2016 in part to the referendum. The wait-and-see approach saw property sales fall by around a third, said Knight Frank senior partner and Group Chairman Alistair Elliot.
Although the best sales have tended to be outside Central London (Zone 1) during the last few months, Central London is still popular amongst Hong Kongers and Singaporeans, but only at prices of up to £1,200 (S$2,360) psf, said Richard Levene, Director for International Properties at Colliers International.
Elliot said the greatest short-term impact of a Leave vote would be a run on the sterling, which could in turn encourage foreigners to purchase more property.
Cheryl Marie Tay, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories, email cheryl@propertyguru.com.sg
