theSun Property July 2016

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ACCORDING to a recent
report by the globally
renowned real estate
company specialising in
services and investment
management Jones Lang LaSalle
(JLL), 2016 ushers in a range of
opportunities in theMalaysian
residential propertymarket. These
aremainly due to the government’s
coolingmeasures that have affected
market sentiment, persistent
market demand, industry game
changers and its offerings in
Greater KL, not forgetting the
recent impact of the United
Kingdom’s (UK) decision to leave
the EuropeanUnion (EU).
With that, theSun examines
these circumstances, this week,
the effects of Brexit, a boon for
those who have ready cash and a
plan at hand.
JLL’S VIEW
JLL experts say Brexit will bring
short-termopportunity for
international investors but weaker
occupier demand and subdued
capital flows. For Brits, there is a
considerable amount of uncertainty
and no real precedent but for
investors, the quick ones have
already acted fast in seeking
opportunities in property
investment since the pound
plummeted to a 31-year low
recently.
Like a coinwhich has two sides
(some say three), the London
housingmarket will be further
affected, like it or not.
“Paradoxically, investors may
well identify opportunities in this
market over the short term,
> Brexit brings windows of opportunity in real estate
Favourable circumstances
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PART1
particularly international
purchasers that can benefit from
the currency arbitrage that has
opened up due to a weaker pound
sterling,” said JLL head of
residential research AdamChallis
(pix). A boon for us and other
foreign property investors and
unfortunate for the Brits. On the
other hand, it really depends on
howone views the circumstances.
While independent experts
suggest a cumulative loss toUK
output and incomes, ranging
between 3% and 10%over the next
five years, post-Brexit, there will be
fiscal savings from the country’s
exit from the EU. “But these are
likely to be offset by the costs of
lower growth,” say JLL experts.
BUSINESS PERSPECTIVE
Business and economy online
website reported that the
Brits are in a dilemma, whether to
proceedwith house purchases set
in train or not. Estate agents and
mortgage brokers claimed that an
initial wave of buyers recently
pulled out while other home buyers
are assessing the potential impact
of the vote on
house prices,
at the same
time
considering
howBrexit
will affect
their own job
security.
Ft.comalso
reported
private
London
residential
developer
Galliard
Homes’ sales
director DavidGalman as saying: “I
anticipate that wemay get a small
number of deals falling out of bed ...
All domestic end users are spooked
by the Brexit drama. But a few calls
have come in from investors
thinking theymay get the deal of
the century ...”
Then again, analysts at Bank of
AmericaMerril Lynch predict a
10%price correction in the year
stating that themarket had already
slowed in themonth preceding the
vote ... “Besides, initial uncertainly
andworry among consumers will
likely lead to an immediate stalling
of the housingmarket, although it
will takemuch longer to see the full
economic effects of Brexit,” the
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theSun ON FRIDAY | JULY 1, 2016