Just when all of us thought we can have a period of peace, the latest Greek elections have thrown the gates to chaos wide open. The austerity measures advocated by the Germans have caused Sarkozy his job and for the ordinary Greeks quite a bit of pain. I see only economic pain in the Euro zone for sometime to come. Some of you asked me why I have not made my move in Europe, well this is why. The downturn in continental Europe will be there for some time to come.
What impact does the European mess has our real estate? Well I definitely see more money coming our way. The 75% percent taxes proposed by Hollande is scaring entrepreneurs and the old money towards London and Asia. I see Singapore as a key beneficiary. There is an emerging anti-rich sentiment in Europe and the wealthy are scared. They have good reason to be but what is Europe’s loss will be our gain. On the other hand, weak global growth is also a concern as Singapore is such an open economy, vulnerable to global trends.
Look towards our exchange rates for guidance. If the Singapore Dollar strengthen drastically, be ready for another wave of property price increases especially in the commercial sector.
In the meantime, God Bless and all the best.