Street Level

If you are launching a financial blog, what better day to do it than on Brexit day? The UK has just voted for a smaller and less inclusive society. As our own Prime Minister had put it, only time will tell if the UK has made the right decision. We see similar echoes of this in our very own little red dot, with the largest public protest ever organized in Singapore’s history over the 2013 Population White Paper. Hong Kong’s Umbrella Movement, Arab Spring, the rise of Trump, etc. – the people are voting unconventionally because of perceived inequalities and a slow realization that perhaps our generation will not be better off than our parents’.

For us Singaporeans, beyond a low pound rate for the foreseeable future, how exactly a Brexit will affect our personal finances is impossible to accurately predict just yet. In the near term, we believe US interest rates will remain stable for the rest of this year and likely into the next. This translates into low stable rates for Singapore as well and decreases the likelihood of a quick removal or positive amendment¹ to the Additional Buyer’s Stamp Duty (as well as the other cooling measures). As a result, residential property prices are likely to continue their slow decline for the rest of this year. We also expect capital inflows back into the Singapore REIT(s) market.

Nevertheless, the world has just gotten a lot more interesting with Brexit. On this historic day, with markets down and the Japanese Yen high, we welcome you to Street Level.