Post Brexit Singapore suspends loan programme for London properties.
Commercial property is on our minds as UOB, that is the third largest lender in Singapore, has made the decision to suspend loans for London properties. This is yet another less than positive effect of the Brexit referendum. Inevitable perhaps, as financial markets hate uncertainty. In the last 7 days since the result the financial markets have been all over the place. With the pound having reached lows not seen since 1985 the markets have the jitters. However, in Singapore its dollar has risen by 10%+/-.
Will we become inured to bad news in the financial markets?
This is not great news as Asian buyers were topped by Singapore last year. Knight Frank have provided the figures in the wake of UOB saying they will temporarily stop property loan application for properties in London.
“As the aftermath of the UK referendum is still unfolding and given the uncertainties, we need to ensure our customers are cautious with their London property investments.”
Therefore, despite Singapore dollar rises the bank is advising caution
No one has any concrete idea how this Post Brexit world will play out. Although this is not necessarily good news for London it is obvious that Singapore needs to be a little circumspect. UOB has the biggest exposure and any bank is going to want to shore themselves up against unintentional consequences as we grapple with the brave new world. What impact will it have on commercial property in London in the long term?
It’s obvious that a more conservative attitude will prevail.
Hopefully it won’t last too long. It may not be a bad thing for financial services to experience a period of reflection and conservatism. DBS executive director of secured lending, Tok Geok Peng feels people should ‘assess the situation carefully.’ It’s something everyone is doing right now. But what are the potential scenarios we might expect? Here are 5 potential scenarios post Brexit.
The UK needs to keep calm and carry on, to use a cliche.
We are hoping people continue to buy properties both residential and commercial property. If we are so confident about the UK’s new opportunities we have to substantiate the rhetoric. Communities still need assistance, churches still need to be found, properties for expansion and renovation still need to be bought and sold. There is no reason to be paralysed, just thoughtful. What do you think? How is Brexit impacting on your decision-making?Tags: Brexit