Is COVID-19 Crashing the Real Estate Market in SINGAPORE?
Good morning Readers! It is pretty early in the morning. 1 am writing this blog post, I wonder who is going to read. The circuit breaker has certainly messed up my sleeping timing and obviously my time to get out of bed. I am waiting to catch ONE WORLD AT HOME at 2am 19/04/2020 so might as well write something inspirational or maybe useful?
Back to the topic, I have received tons of calls in the past month from clients asking if the market will fall. Naturally, when a client asks about the decline of the market, my mind would skew towards the thought that these clients are concerned about the prices of their current property, how are they going to sell if the price remains at a low, will the price of their property recover to it's previous high. On the other hand these questions also led me another possibility, "are my clients also thinking of entering the market during this pandemic?" Of course, my every conversation with each client has its own specifics and there are different concerns. BUT what if we are cash rich, should we enter the property market now?
Let's look at how the property market did during SARS. Time frame is from November 2002 - May 2004.
Quite impressive. Line almost flat! The best part is, buyers who entered in 2003, start to see increment in value by 2004 - early 2005. In 3 years, prices almost doubled.
In Real Estate, we need to know these trends. These trends will help us understand a future situation where another crisis occurs again. Trends are data on how the market reacts according to the demand and supply.
I would confidently say, Covid-19 might drive the prices UP. It will not be as impressive as the SARS episode as we currently have extensive cooling measures in place but the increment will be significant to see capital gain.
As for the WHOLE MONTH of APRIL, we will OBVIOUSLY see a steep drop in transactions. Main cause is, I AM NOT OUT THERE WORKING! Aiya, our real estate professionals have taken a temporary switch in career and are all either KEYBOARD WARRIORS, MARATHON RUNNERS or PROFESSIONAL COOKS in APRIL! I kid not, my boss is now head coach to his kids' badminton training. I also turned into a temporary cook. check out my Instagram. I am not complaining, it is definitely for the good of Singapore for everyone to STAY HOME. I am not complaining, just ranting till I go broke. Alright on a serious note, LOOK FOR THE UPTREND. It is coming once we kiss Covid-19 goodbye. More importantly, where will you be and what will you be doing when this UPTREND comes along?
Call me? I tell you ok?