Mingtiandi

Asia real estate and outbound investment news

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
Sign Up / Login Logout

Lost your password?
Register
Forgotten Password
Cancel

Register For This Site

A password will be e-mailed to you.

  • Capital Markets
  • Events
    • Mingtiandi 2022 Event Calendar
    • APAC Residential Forum 2022
    • Asia Logistics Forum 2022
    • Asia REIT Forum 2022
    • APAC Data Centre Forum 2022
    • Singapore Focus Forum 2022
    • Office Strategies Forum 2022
    • More Events
  • MTD TV
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail
  • Research & Policy
  • Advertise

Brexit Impact on Real Estate Won’t Last Says LaSalle

2016/07/19 by Michael Cole Leave a Comment

Canary Wharf

London property is in trouble, but that’s not necessarily bad news for everyone

Fluctuations in the real estate market caused by the UK’s vote to leave the European Union are likely to be shorter-lived and less severe than many investors fear, and Asian markets could gain increased attention from investors following the unexpected disruption in the United Kingdom, according to a report released this week by LaSalle Investment Management.

The correction in real estate pricing is expected to be largely restricted to the UK over the next 18 months, and medium-term capital inflows into real estate will only be interrupted, not reversed, the property investment management firm found in its mid-year Investment Strategy Annual (‘ISA’) 2016.

Following the historic vote to break away from the European Union last month the UK’s property market, which had been a magnet for international capital, has seen the suspension of trading in £15 billion ($19.8 billion) across at least six UK property funds, after investors rushed to cash in the real estate investment vehicles in the face of post-Brexit worries.

New Economic Challenges May Favor Real Estate as an Asset Class

With economies in many locations continuing to face headwinds and central banks keeping interest rates low, LaSalle expects continued strong demand for real estate assets.

“The downward re-rating of global growth rates, inflation expectations and interest rates in 2016 means that the “triple low” macro environment will persist for several more years in the EU and Japan,” said Elysia Tse, Head of Research and Strategy for Asia Pacific at LaSalle. When rates and bond yields are low and capital markets are volatile, real estate usually gets the benefit of capital flows for being a relatively stable, yet higher yielding, asset class.

Unfortunately for owners of London property, stable assets may not yet include properties in the UK’s capital. Just this month, TH Real Estate, which manages property investment firm Henderson’s £3.9 billion UK Property PAIF fund, put 440 Strand in London on the market for £220m, and Aberdeen Asset Management has put the largest asset held by its £3.2bn UK Property Fund, 355 Oxford Street in London, on the market for £145m.

Both fund managers put the assets up for sale after earlier having been forced to freeze redemptions of their property funds.

Europe’s Loss Could be Asia’s Gain

LaSalle sees the new level of uncertainty in the UK as acting in favor of Asian property markets. “If more volatility or uncertainties arise in other parts of the world, Asia Pacific’s relatively stable collection of nation states and treaties could be viewed more favorably by international investors,” Tse noted.

In Asia-Pacific, the investment firm believes that the fallout from Brexit will be limited. LaSalle points out that the UK and EU are not key trading partners for most Asian nations, where intra-regional trade has outpaced trade with other parts of the world since the global financial crisis, and believes that, in general, countries in the region still have considerable policy ammunition to support their economies.

Share this now

  • LinkedIn
  • Share
  • Tweet
  • Email

Filed Under: Research & Policy Tagged With: daily-sp, Elysia Tse, LaSalle Investment Management

Mingtiandi Membership 780x439 v2

Leave a Reply

Your email address will not be published. Required fields are marked *

Get Mingtiandi Delivered

MTD TV

Demographics and Demand Driving Asia Data Centre Investment Surge: MTD TV
Greystar Nears First Closing of $1B APAC Multi-family Venture: MTD TV

More MTD TV Videos>>

People in the News

daigo Hirai BlackRock
Asia Real Estate People in the News 2022-08-08
Bryan Southergill
Ares Hires Bryan Southergill to Run Asia Real Estate Business
Wu Bingqi CR Land
Asia Real Estate People in the News 2022-08-01
Jennifer Weitzel GLP
Asia Real Estate People in the News 2022-07-25

More Industry Professionals>>

People in the News

Asia Real Estate People in the News 2022-08-08

daigo Hirai BlackRock

BlackRock’s appointment of a new head of Japan real estate leads this week’s roundup of personnel moves from around the … Read More>>

Ares Hires Bryan Southergill to Run Asia Real Estate Business

Bryan Southergill

After more than eight years leading real estate investments for KKR in Asia, Bryan Southergill has taken on a new role … Read More>>

Asia Real Estate People in the News 2022-08-01

Wu Bingqi CR Land

Leadership changes at mainland real estate firms lead this week’s collection of personnel moves from around the region, … Read More>>

Asia Real Estate People in the News 2022-07-25

Jennifer Weitzel GLP

A pair of senior level hires in the data centre sector lead this week’s collection of personnel moves from around the … Read More>>

More Industry Professionals>>

Latest Stories

Li Sze-lim R&F
Guangzhou R&F 2021 Net Loss Doubles to $2.4B After Write-Down
kei hoi pang Logan
Logan Halts Payments on Offshore Bonds, Appoints Advisors for ‘Holistic’ Restructuring
stars of kovan - fortune reit, ck asset
Fortune REIT to Buy CK Asset Singapore Project and More Asia Real Estate Headlines

Sponsored Features

For Hong Kong’s Office Market, Border Reopening Holds Key to Unlocking Demand
Top 3 Trends Driving a Connected Experience in Commercial Real Estate
Malaysia Industrial Park Offers Opportunities to Heavy Industry Enterprises

More Sponsored Features>>

MTD-QR-Code-320

Connect with Mingtiandi

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Real Estate News

  • Capital Markets
  • 2022 Event Calendar
  • MTD TV Archives
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail

More Mingtiandi

  • About Mingtiandi
  • Contact Mingtiandi
  • Mingtiandi Membership
  • Newsletter Subscription
  • Advertise
  • Terms of Use
  • Privacy
  • Join the Mingtiandi Team


© 2007-2022 China Advertising Media Ltd (Samoa). All rights reserved.