Suddenly, all that wailing and gnashing of teeth seems like it was all for naught. While Brexit remains an incendiary word for many on the British Isles, 19 months after the historic vote the property market (at least) can claim that it isn’t really feeling the pinch.
In fact, the situation is quite the opposite if you consider the uptick in investment interest from Chinese investors.
According to international property news website, worldpropertyjournal.com, the number of Chinese investors has actually increased since the Brexit Vote on June 23, 2016 – by an enormous 43.2%!
Chinese international property portal Juwai.com concurs, stating that there is currently a post-Brexit referendum boom in Chinese property buying inquiries. The key reason identified for this, it says, is the weaker Pound Sterling, which has propelled demand and somewhat of a buying rush.
Economists say that there are two important things to consider here. The first is, Brexit has not actually happened yet, so the full impact of any economic repercussions cannot be measured, or hypothesised, at this point. Much will depend on the details of the pull-out negotiations.
The second is that this is a trend that seems directly relevant to the low value of the Pound Sterling. Investors seem confident that the Pound will eventually bounce back, hence the rush. However, a prolonged devalued pound might also water down the property rush in the long run.
In the meantime, London property, in particular has been receiving the large bulk of Chinese adulation. The average property inquiry price in London has increased to $767,000 in 2017, from the previous average of £573,000.
Global market watchers say they expect the buying to remain at similar levels throughout 2018.
Juwai.com reports that due to the low Sterling, Chinese buyers find that they can now buy they can buy UK property for about 10% less than they used to. Given UK’s long-held standing as a blue chip property haven, this represents an opportune moment to make a stable investment at a lowered entry cost.
So far, the Pound Sterling has only regained about two-tenths of a per cent in value from the low point it hit in the week or so after the referendum.
In general, Chinese property investors have been increasingly active the world-over and UK is not the sole destination receiving this benefit.
Aside from the UK, other key countries that have been receiving Chinese investment attention are the United States, Australia, Canada, Thailand, New Zealand, Malaysia, Germany, Spain and Greece.