Brexit is a decision by Britain to leave European Union (EU). The main reason was related to immigration matters. I personally think this is not the right decision but the majority have decided. Britain’s current Prime Minister Theresa May is having huge obstacles to carry out what has been negotiated with the EU and the deal is supposed to be finalised by March 2018. She has many oppositions from even her own party members and just survived a no-confidence vote just last month. Imagine what does this do to the world’s top 6 largest economy…
Well, Brexit is affecting Britain’s property market negatively. That one word is ‘uncertainty.’ Many articles have been written and this is one of them. (click to read)According to an Article in Dailymail.co.uk, house prices in some of the most expensive areas in the capital have fallen by up to a quarter over Brexit uncertainty.It says that the demand for London homes in Kensington and 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 by up to £500,000 in the year to November, according to Your Move. When we look at the average basis, London’s ten most expensive boroughs are down by 9 per cent. In some upmarket areas such as Hammersmith & Fulham and Camden, the falls have been more than 10 per cent. The article also quoted a recent case of a prime property. A five-storey mansion in Belgrave Square was sold for £60 million in December even though it was listed at £100 million initially. Article in Dailymail.co.uk here.
Are there uncertainties in the Malaysian market which is affecting the sentiment? 🙂 If I answer No, then I am not objective. However, I think the government is doing what it could to ensure our economy continue to move upwards. When times are uncertain, people are unwilling to invest. When this continues, the number of job created reduces and the vicious cycle continues. As of now, Malaysia continues to be rated as ‘Investment grade’ by all international rating agencies. As per our Finance Minister Lim Guan Eng’s latest statement, even the deficit numbers are in check for 2018 because SST has enabled the government to collect more than what it budgeted. As for the GDP growth, the predictions are all within a range of 4.5 percent all the way to 4.9 percent. Happy following and understanding.
written on 24 Jan 2019
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