Donald Trump’s win in the US Presidential race “will bring a property industry leader into the White House for the first time in American history. Without a doubt a Trump presidency will be pro-property and pro-real estate,” said Peter Wetherell, chief executive of Wetherell and a leading London real estate broker.
He said he thinks Mr. Trump’s presidency will greatly benefit the luxury real estate markets in the U.S. and internationally.
“It shows just as we had with the Brexit vote in the U.K. that American voters also want a change of direction,” Mr. Wetherell said.
Already since Brexit, there’s been an uptick in American buyers in London’s Mayfair and West End neighborhoods thanks to a depreciated pound, he said. And as Britons turn away from Europe, a Trump presidency could mean strengthened trade relations with the U.S., opening “the electrifying possibility of new U.S. and U.K. trade deals,” said Mr. Wetherell.
“We are already seeing over the last four months an upturn in U.K. buyers looking at New York, Miami and L.A.,” he said.
And rather than plunging like the British pound in the wake of Brexit, the dollar rose broadly against other currencies, including the euro and the yen, on Wednesday. The dollar weakened slightly against the pound.
If the greenback does eventually slip, a devalued dollar would not be all bad news for some international investors. The weakened dollar would effectively strengthen the British pound, Mr. Hersham said. “It would therefore certainly help with pound-based purchases in the U.S.,” he said, particularly in cheaper luxury areas like Miami, where price per square foot is less than $1,000.
It may take longer for real estate markets in U.S. cities to digest the news, said Jonathan Miller, president and CEO of appraisal firm Miller Samuel. But ultimately, Mr. Trump’s presidency shouldn’t have too much affect on prime areas like New York, and renewed pressure to keep interest rates low may even spur activity, he said.
“With the continuation of near record-low interest rates, I don’t see the election results as having much of an impact to the U.S. housing market after the short-term jitters pass,” Mr. Miller said.
Some said that there’s nothing to do but wait and see. If anything, Mr. Trump’s win signals that America and Britain with its Brexit vote are only the first in a groundswell of political defiance of large trade blocs, said James Roberts chief economist at Frank Knight. Germany, the Netherlands or France could be next when these countries hold elections next year, he said.
“The high level of volatility we have seen in global investment markets this year is set to continue,” Mr. Roberts said, “not just because of Trump, but also out of concern as to which major economy will be next to deliver a bombshell election result.”