Brexit is a decision made by Britain to leave the European Union (EU). The main reason was related to immigration matters. However, Britain’s current Prime Minister Theresa May is facing huge obstacles carrying out what has been negotiated with the EU and the deal is supposed to be finalised by March 29 this year. Imagine what this does to the world’s top six largest economies.
Brexit has been affecting Britain’s property market negatively due to the “uncertain” future of the country.
According to an article in DailyMail, house prices in some of the most expensive areas in the capital have fallen by almost a quarter over Brexit.
The demand for London homes in Kensington, Chelsea and the city of Westminster has reduced dramatically over the past year due to higher taxes and Brexit.
The average house value in the exclusive postcodes have fallen to £500,000 (RM2,665,592) until November, according to Your Move.
On average, London’s ten most expensive boroughs are down by 9%. In some upmarket areas such as Hammersmith & Fulham and Camden, it has fallen by more than 10%.
The article also quoted the recent case of a five-storey mansion in Belgrave Square, regarded as prime property, that was sold for £60 million in December even though it was initially listed at £100 million.
Are there uncertainties in the Malaysian market too? To answer “no” would mean one is not objective.
During uncertain times, people are unwilling to invest. When this reluctance to invest continues, the number of jobs created reduces and the vicious cycle continues. However, the government is doing what it can to ensure our economy is moving forward.
As of now, Malaysia continues to be rated as “Investment grade” by all international rating agencies. Finance Minister Lim Guan Eng said even the deficit numbers were in check for 2018 because the SST enabled the government to collect more than what they budgeted for.
As for GDP growth, the predictions are all within a range of 4.5% to 4.9%.
This article first appeared in kopiandproperty.com
Charles Tan blogs at property investment site kopiandproperty. He dislikes property speculators and disagrees that renting is better than buying. He thinks it’s either property or poverty. He is presently the CEO of an auction house auctioning assets beyond just properties.