Jitters were sent through global economies as a result of the US election.
Despite the initial wobbles that were sent through the Asian markets as a result of the US elections, Asian shares have now bounced back.
The hotly contested competition to become the next American president came to a head yesterday when Donald Trump crowned victory over Hillary Clinton. This immediately sent shock waves across the world as concerns were raised to uncertainties as to what would happen next. Trump’s policies relating to immigration, trade and international relations are still unclear, and notably how his position in power will influence the rest of the world.
Today Japan’s Nikkei 225 index exceeded the losses made from the previous session increasing by 6 percent. Likewise the markets in both Hong Kong and Australia saw positive growth.
The result of the US election was surprising for many, similar to that of Brexit. However sentiment across the property world suggests that any immediate effects will be just a blip.
Matt Whitby, head of research and consulting at Knight Frank Australia, commented, “Equity markets will fall heavily over the coming days, and it could take some time for volatility to calm down, however I still expect that markets will re-adjust over the coming weeks. Clearly, like the Brexit vote, this will create short to medium-term uncertainty in financial markets, capital markets and property markets. Hence we may see some plateauing in commercial and residential price growth, and indeed some downward pressure, over the coming months leading into Christmas.”
The US reputation is that of a powerhouse. Many countries aspire to their model but this may shift with Trump in power. China is expected to strengthen its position as their America fairy tale democratic system did not play out as expected, but ahead of that many Chinese commentators have argued that faith had already been damaged with the US thanks wars both in Afghanistan and Iraq.
Either way, time will unravel the next steps but the outlook remains positive for property according to Nicholas Holt, head of research at Knight Frank, Asia Pacific.
“The intrinsic qualities of property – that in times of uncertainty it acts as a safe haven, and in times of economic expansion benefits from rental and capital growth – means that despite all the uncertainty of 2016, real estate markets will continue to be active with prime assets in the world’s most resilient cities remaining in significant demand.”
