Singapore investors divided on UK property post-Brexit

Those looking to invest in property in the United Kingdom are divided on whether their buy-ins will reap returns, industry experts said.

After its vote to leave the European Union, also known as Brexit on June 23, the pound has experienced an 11 percent drop in value against the Singapore dollar. In the week of June 27, it fell to a record low of $1.7825.

Industry experts told TODAY that a weakened pound is a double-edged sword for Singapore investors. While it makes it easier for them to acquire properties there, the currency could weaken further, diminishing the value of assets and limiting gains from sales.

This has caused a lull in the market, according to London property consultants JOHNS&CO.

Investors are “too clouded by the range of uncertainties happening in the UK, with so much mixed and often-conflicting opinions,” said Mr Duncan Peacock, who manages its Singapore offices.

“Focus will be on the more immediate projects coming to life, rather than those completing later down the line due to the lengthened payment structures. For others, they will adopt a wise wait-and-see attitude,” he added.

Mrs Doris Tan, regional director of British real-estate firm Strawberry Star quipped: “Brexit came as a surprise to many people, and it is still early days to say whether this is a good or bad time to purchase. Nothing much will happen in the property market as summer is normally a ‘holiday’ period.”

“Come autumn and winter, activity will return, which should give an indication of where the London property market is heading,” she said.

In the two years leading to June 2015, Asian investors channeled US$22.2 billion ($29.91 billion) to property in the UK, a Knight Frank report showed. Singapore was the largest investor at US$6.44 billion ($8.68 billion).

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