News

Property Investors Should Hold Plan Until Brexit Cools Down

Last update: 01/07/2016

By Zarul Effendi Razali


KUALA LUMPUR, July 1 (Bernama) -- Local property investors should hold any investment plan into London and wait for the Brexit effect to normalise, says iProperty Group, which owns Asia's leading online property portals.


Its Managing Director and Chief Executive Officer Georg Chmiel said local investors should at least wait for the British pound to be stable before returning to the property market in the United Kingdom (UK).


"What I do believe will happen (currently) is that overseas investors who are investing in London, will look at other places to invest their money in," he told Bernama.


If the British pound continues its downward momentum, he said, there should be a cautious move by investors in making any investment decision relating to the UK.


Some analysts recently expect the ringgit to strengthen up to 4.0 against the British pound following Brexit.


The local unit had risen to 5.4293/4412 against the British pound on June 30, 2016 from 5.9342/9465 the day before the outcome of the UK referendum.


However, Chmiel said it was the right time for local investors who have been investing in London to start looking at the different potential markets in Europe.


"We have already seen increasing demand for properties in Germany and the other side of mainland Europe," he added.


Meanwhile, property market watchers have turned cautious when it was reported that Singapore's United Overseas Bank has suspended its loans programme for London properties on renewed uncertainties due to the Brexit referendum.


Other Singaporean banks too are advising clients about risks in investing in London such as currency losses.


-- BERNAMA