How Brexit Affect Singapore Property Market?
Let us finally discuss the most important aspect of Brexit phenomenon: its effects on the Singapore property market.
It is being speculated that the residential and commercial property market in Singapore and Australia will be a major winner of the Brexit episode. This is because a big chunk of international capital will flow towards these two destinations and find its way into the property sector. Financial pundits are already saying that the asset managers will seek to transfer the bulk of their funds out of Britain and park it somewhere else. In this regard, Singapore and Australia are the two most likely destinations for shifting these funds.
Citi Group analysts have released a forecast stating that the office rents in London will go down by 16 to 20 percent because thousands of layoffs will be carried out in the city. Property stock prices of shopping malls and office buildings have also slid down by 4 to 8 percent. This is in anticipation of the reduction in operations of many European firms.
Office yields in Singapore have been tightened already since the Brexit. Citi Group states that the rent will further enhance as businesses seek to move out of the volatile European markets.
Singapore is considered a low-risk area and it is being estimated that apartment prices could also rise here as investment shift from Europe starts to occur. How Brexit Affect Singapore Property Market will, in the end, depend on the circumstances as they unfold in the financial markets worldwide.