Brexit might spur private home buying in Singapore, says report

But commercial properties are on the losing end.

With interest rates likely to stay lower for longer after the Brexit vote, analysts expect homebuyers to become more keen on snapping up condominium units in order to lock in low mortgage rates.

“The immediate Fed rate hike which is no longer on the cards could spur interest in private properties as
upgraders and investors take advantage of the lower mortgage rates,” noted a report from Cushman & Wakefield.

The report added that Singapore’s prime luxury property will be the asset choices of the rich should the
wealthy around the world takes a flight-to-safety route to ride out the volatility post-Brexit.

However, the private residential market’s good fortune may not necessarily spill over to the commercial property market. The report cautioned that corporate decision-making is likely to slow within certain global business sectors as occupiers pause to gain a better understanding of the ramifications for their operations.

Singaporean outbound investors are expected to stay keen on acquiring properties in the United Kingdom, particularly given that the UK is one of the top outbound real estate investment destinations for Singaporeans.