Singapore property investors unfazed by Brexit: Survey

SINGAPORE — Unfazed by Britain’s decision to leave the European Union, also known as Brexit, Singaporeans continue to view the United Kingdom as one of their top markets for property investment, a survey commissioned by real estate consultancy IP Global has shown.

The UK is the preferred overseas investment destination for 17 per cent of Singaporeans, a 1 per cent rise from last year, IP Global said on Tuesday (April 25). The continued interest in UK property is being driven by the surge in the Singapore dollar against the pound and the belief that the British economy continues to be underpinned by strong fundamentals.

The Singapore dollar has risen 9.5 per cent over the past year to S$1.7835 per pound late in Asia on Tuesday, making UK properties more affordable for Singaporean investors. Meanwhile, the latest official data showed the UK economy recorded quarter-on-quarter growth of 0.7 per cent in the last three months of 2016, defying expectations of a contraction in the wake of uncertainty surrounding Brexit.

“The concerns surrounding Brexit have been factored in by the market as demonstrated by the positive economic data. The UK economy is underpinned by strong fundamentals; therefore it is not surprising that Singaporean property investors remain unfazed by Brexit,” said Mr Paul Preston, IP Global’s Head of Sales.

“We have seen continued interest in London but also in other key UK cities such as Manchester and Liverpool, where the annual house price has been growing at a year-on-year rate of 8.8 per cent and 6.8 per cent, respectively,” Mr Preston added.

For Singaporeans, Australia continued to be the No 1 property investment destination, with Canada in third place, the survey showed.