The UK’s decision to leave the European Union in June has resulted in some Brexit winners.
For a number of years the United Kingdom has been considered to be a safe haven for investors to park their money. Choosing the UK due to its stability, both politically and economically, property has been a particularly popular and liquid asset.
Whilst there was a slight dip in the market in 2008 thanks to the global financial crisis, property in prime areas quickly bounced back to levels higher than ever before. The UK suffers from a lack of supply which certainly spurs on values, but the government are continually trying to keep Britain building to meet demand.
This sentiment for the UK still remains strong today. There has been increased interest in the UK’s property market from investors in Asia since the pound has weakened as a result of Brexit. Henry Chin, head of research at CBRE Asia Pacific recently commented, “We have seen an increase in inbound inquiries since the Brexit vote, especially from Asian high-net-worth individuals and family offices, who still see London as a safe destination for property investments”.
Opening up avenues for investors, it has been noted that China has further invested in the UK since Brexit. Investing THB 127 billion across a range of industries. Well known Thai residential developer Sansiri is looking to widen its investment portfolio too according to its chief operating officer Wanchak Buranasiri. Sansiri have previously already invested in London in 2010.
Plus it has been reported that Singha Estates are also looking at purchasing hotels in the UK. Naris Cheyklin, chief executive officer, commented that the devaluing pound has led to a discount up to 10 percent due to the currency fluctuations. Singha already have a presence in the UK through their subsidiary S Hotels and Resorts.
This international investment into the UK is a result of the country’s credibility as the place to invest, the products available and now the weakening pound. It certainly paints a rosy picture for some of Brexit winners.