Singapore property investors shrug off Brexit concerns

UK remains a top hub for Singaporeans to invest in property.

A survey commissioned by IP Global revealed that the United Kingdom continues to remain as a top destination for Singapore investors looking to pour investment to in the overseas property market amidst concerns surrounding Brexit.

The study found out that UK was the preferred investment destination for 17% of Singaporeans, a 1% rise from last year. The continued interest in UK property is being driven by two key factors.

For starters, investors continue to take a long-term view of the UK economy, which many feel is underpinned by strong fundamentals. This belief has been backed by the latest official figures showing the economy experienced quarter-on-quarter growth of 0.7%, defying expectations of a contraction in the wake of uncertainty surrounding Brexit.

Also, the Singapore dollar has strengthened against the British pound, appreciating by 9% over the past year. The increase in strength has made UK properties more affordable for Singaporean investors.

IP Global head of sales Paul Preston said overall dip in currency, despite the slight rise in recent days, makes the UK property market a more attractive investment destination with long term gains. With over 60% of Singaporeans planning on investing in assets over the next 12 months, an increase in investment in UK property is expected.

“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. Singaporeans have a reputation as shrewd investors and our findings have shown that, while stocks and share are the preferred investment asset, there has been an increase over the past year in Singaporeans looking at property abroad,” Paul said.