Brexit Could Trigger Island Property Slide
Today’s shock Brexit exit has experienced a sudden and rapid reaction from global financial markets, as the pound has taken a literal pounding.
The financial sector does not like volatility and the virtual Pandora’s Box of geopolitical fallout is likely to be a significant disruptor.
In Phuket during the mid 2000’s the pre-GFC depreciation of the British pound was the turning point in a vibrant real estate cycle.
Given the currency is the bread and butter of many investors and also used by other property classes such as retirees or holiday home purchasers, a broad devaluation could have a potential negative impact.
As for tourism, one will have to look forward to the coming high season as the UK is a key Greater Phuket source market for snowbirds and the exchange rate between the pound and Thai baht do have a connection.
Pandora played a starring role today, but the economic fallout from the Brexit have undoubtedly captivated the world and taken front and center stage.
Readers should assume the position and brace brace brace.