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Australian property market could benefit from Brexit

With the announcement today (Friday 24th June) that Britain will be leaving the European Union, it seems that this could actually spell positive news for Australia's property industry.

This is as long as the government continues with its plans to follow the majority of voters in Britain to make the Brexit official, according to REA Group Ltd.

Nerida Conisbee, REA Group chief economist, said the uncertainty that this exit has created could have a good impact for Australia.

She added that Australia is usually in competition for commercial property with countries within Europe, but all that could be set to change.

Speaking on behalf of the company, she commented: "With the level of uncertainty now in Europe and Britain, Australia will now look even more attractive for commercial property seekers."

Things are looking good in the Australian market in general, as the country is currently very stable thanks to economic growth and low sovereign risk. Ms Conisbee believes that these factors make Australia something of a "safe haven" during uncertain times.

In fact, the reality is that this is likely to be true, as many Asian buyers have turned to London as a destination for property investment, but they are now likely to look towards Australia, pending the level of uncertainty in the UK market.

Australia's safe credentials are likely to be bolstered as a result of what Ms Conisbee refers to as "the volatile European environment".

She alluded to the fact that the Australian economy may well be affected due to the Brexit, but feels that the impact it will make will be minimal.

It's impossible to say for sure what will happen from the fallout of this decision, but it seems that in the short term, the Australian property market is going to benefit from the unease felt in Europe and the UK.

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