The Australian property market could be about to experience a surge in interest, as nationals return from the UK after the Brexit vote.
According to the Sydney Morning Herald, the decision to leave the European Union (EU) could see a mass exodus of Aussies and therefore a population surge in Australia.
James McIntyre, economic analyst at Macquarie, said: “A weaker growth outlook for the UK and Europe could see a return of Australian expats, and a decline in the number of Australians seeking better opportunities offshore.”
The market has been flooded with apartments recently, but an influx of Australians returning home could see buyers for these properties.
Mr McIntyre added: “There's still a very large supply pipeline coming into the housing market. However, a potential firmer migration backdrop and additional stimulus from the [Reserve Bank of Australia] are not factors which could help ease any potential indigestion.”
Directly after the referendum result was announced, the rate of exchange for pound sterling against the Australian dollar took a nosedive by ten per cent.
This could lead to fewer Aussies travelling to the UK to find work in the future. The latest census conducted in the UK suggests there are 120,000 Australian nationals living in the country.
Prior to the vote, any hint of an out conclusion saw the Australian share market plummet and $50 billion of stock was ditched while the decision was anticipated.
Only time will tell whether Mr McIntyre’s predictions come true and Australians decide the benefits of being in the UK no longer outweigh returning home.
If this proves to be the case, then it could be the Australian housing market that is the true winner of Brexit.
