We may be on the other side of the world, but that doesn’t mean that Australia won’t see some affects from the surprising decision by the UK to separate from the European Union.
But it could actually be good news for the Australian economy and for local property markets. The general consensus is that Australian commercial and residential property markets will benefit from the Brexit.
It could take years for an official exit to take place but the uncertainty surrounding the true implications of a Brexit makes it a bad time to invest in UK real estate in the eyes of many investors.
There are already reports of investors pulling out of property deals, likely looking to invest their money in other markets.
Australia is likely to be a popular choice. Unlike UK and much of Europe, Australia offers what many foreign investors will be looking for – political stability, financial system transparency, and strong growth.
REA Group chief economist Nerida Conisbee believes the Australian real estate market will look increasingly attractive, particularly compared to the volatile European environment
According to Ms Conisbee there may be some impacts on the Australian economy as a result of the British exit from the European Union, but it would be “nothing enormous”.
“The share market is likely to also be volatile and, as a result, we may see a flight to property.”
But don’t expect a massive influx of international buyers just yet. It’s unlikely that we’ll see any real affects from the Brexit for a few years, as buyers wait and see what’s happening in Europe and adjust their investment decisions accordingly.