Real estate to benefit from Brexit fallout

"Some demand, especially from investors and businesses (hiring and investing), will be delayed and in some cases redirected to other markets," Mr Whitby said.

"Demand for Australian property may actually benefit (as a safe haven) as global investors pause in directing capital into Europe and our demand rests on a wide range of drivers – most of which are unaffected by the referendum decision: the scale of Australia’s business clusters, depth of skills, education, lifestyle and language," he said.

However, Mr Whitby warned that the world is entering a period of renewed uncertainty in the UK and London market, ongoing issues around EU and especially Eurozone stability, which will be highlighted in the run up to French and German elections.

"Uncertainty and instability is bad for financial markets and capital investment, so let’s see what impact it may have on borrowing costs and business/consumer confidence here in Australia," he said.

Mr Whitby noted that the UK has long been a destination for Asian real estate investors, with the attraction of the strong liquidity, stable governance, transparency and clear title.

"With the decision to exit the EU, for existing Asian property owners, the fall in the pound will impact the repatriation of any income returns, as well as the gains on any disposal," he said.

While there is likely to be more volatility in the market, ultimately most investors are looking to the long term, Mr Whitby said, and will therefore continue to hold their assets in the hope that any short-term instability will eventually subside when more clarity of the UK’s role in Europe is determined.

“The decision, however, could also present a buying opportunity for owners not already set, as the significant drop in the value of the pound, as in 2009, could lead to an uptick of interest by Asian investors, who, over the last few months have adopted a wait-and-see approach to the referendum – and will now see their buying power increase significantly,” he said.

“As stated above, Chinese, Singaporean and Hong Kong investors especially, looking at both residential and commercial properties, could also start to look even harder at markets like Australia over the remainder of 2016 until the dust settles in UK/Europe.”

The Brexit fallout could also force the RBA’s hand on monetary policy if banks hike home loan rates to offset any increased funding costs as market volatility continues.

Knight Frank has tipped the RBA to cut rates in July or August once the inflation number comes through.

Mr Whitby said uncertainty for businesses is the biggest threat to Australia in a very global world and that it is therefore inevitable that business behaviour will be stifled over the short-term and delays in occupier decision making will persist.

"Despite this, over the medium term there are reasons to be positive. First, the pessimistic scenarios highlighted during politicised campaigns often fail to emerge," he said.

"Second, as the dust settles, and the UK and global economy stabilises, businesses will reconnect with the fundamental qualities of Australia as a business location; ranging from corporate tax rates, to the large consumer market, to the highly skilled worker base, to the lifestyle."