Not yet, it seems. Though the recent Brexit event has had investors in a bit of fluster, with the lack of clarity of the horizon ahead for both the UK and other European nations, with many expecting some sort of a price drop in properties in the United Kingdom, the real punch of Brexit has yet to take effect – for the real estate sector at least.
Unlike the 2008 financial crisis, property owners are yet pushed to the point to having to dump their assets haphazardly. The risks for property owners and sellers are not extreme yet, thus most of the re-pricing of properties are in secondary assets, according to property analysts familiar with the UK property market. Britain’s real estate sector has remained strong thus far, with continued interest from Asian investors and buyers. Some of the most recent property investments include a￡700 (S$1.2 billion) deal from Singapore’s GIC fund who has joined forces with student housing provider GSA in a student-acommodation property.
Some British funds who may be dealing with investors pull-out due to Brexit may however be looking to sell their property assets and buyers could look towards these properties for possible bargains. Most would however be commercial properties. Residential property hunters may also still be enticed by the weaker sterling and slight discounts.