Singapore property companies and developers with prominent property portfolios in the UK yet to show signs of worry about the future of the property market there despite the recent Brexit upheaval, especially in the long term.
Photo credit: Oxley Holdings
Prices may fall for now, but the impact of the fallout may lessen over the long run. The strength of the Singapore dollar against the British pound might work in the favour as buyers seize the opportunity to snap up investment deals in the current market turmoil. For the developers, as the currency in which the construction costs and bank loans are calculated are the same as the revenue source, the currency exchange factor may only rear its head slightly in the profit segment. And that is also subject to change as time passes.
Some of the high-profile projects developed by Singapore-based property companies include Oxley Holding’s 363,000 sqm Royal Wharf township development in East London, City Development’s Hard Days Night Hotel in Liverpool, Fraser Centrepoint’s Malmaison Oxford and Ascott Residence Trust’s Citadines Trafalgar Square London. Though there are concerns that projects targeting local UK residents may suffer a temporary setback as market sentiments dip due to the recent vote, overseas buyers who are still looking for investment properties may very well be a more than sufficient stopgap while the local market regains its footing.