VIRUS EPIDEMICS AND OUR PROPERTY MARKET

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AN OVERVIEW:

SARS vs COVID-19

Amidst our nation's greatest fears of fatalities from a widespread virus outbreak, the initial cases to date have since proved that the Singapore government's promptness and active containment of the epidemic. However, fears of the virus' potential impact on our national and regional economy still remain as a great economic uncertainty to Singaporeans. We're going to analyse how past viral epidemics, SARS in particular, had impacted Singapore's property market - and whether it was a significantly negative impact. We'll then take lessons from our recent past along with market statistics, to predict the 2019 Novel Coronavirus' potential impact on Singapore's real estate situation in 2020. To better understand the impact of the SARS on our property market, we also have to consider other political and economic factors at play during the SARS crisis in 2003.

 

WHAT HAPPENED PRE-SARS 2003?

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1997     -Asian Financial Crisis

             *Singapore property market crash

1998     Government property policy reversal

2000     Government Land Sales (GLS) resumed,

              Government property cooling measures adjusted

2001     -Dot-Com Bubble Burst

              -September 11 attack

             *Global market crash

             *GLS suspended

             *Government property cooling measures further adjusted

2003     -SARS Virus Epidemic

              -Iraq War

             *Government measures to help nation cope economically

             *Property market remains steady despite global market crash

2004    -Government cooling measures adjusted,

            -Singapore's Property Price Index on a steady incline

  

LIMITED IMPACT OF SARS ON PROPERTY MARKET

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DOTCOM BUBBLE CRASH + SARS

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STRONG MARKET RECOVERY POST-VIRUS OUTBREAK

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IMPACT OF COVID-19 TRAVEL BANS

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CORONAVIRUS: ECONOMIC IMPACT

Investors typically cash out from stock investments and redirect their funds into property investments in times of a turbulent economy. Investors now will take advantage on our low bank interest rates. Coronavirus' economic impact is expected to be short-lived, based on the current situation. The Singapore government has succeeded in putting in place multiple lines of defence to minimise the further spread of the virus. The economic sectors most likely implicated by the Coronavirus' negative impacts are the tourism/hospitality, retail, and F&B industries, with limited impact on the office and industrial sectors, as these are mostly non-tourism related sectors.

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IMPACT ON THE PROPERTY MARKET

In the residential sector, there could be a slight impact on project launches as developers are likely to hold back on new launches in view of the weaker market sentiment. High-end luxury properties that attract more Chinese buyers could potentially face slower take-up rates as viewings are expected to slow down in the midst of the viral outbreak. However, the impact should still be contained as Singapore continues to be seen as a safe haven amid heightened global political and economic uncertainties. If you're weighing in on the different options of your property investments, feel free to contact me for proper advice.

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*While this site has endeavoured to ensure that the information and materials contained herein are accurate and up to date as at 10 Feb 2020, this site is not responsible for any errors or omissions, or for the results obtained from their use or the reliance placed on them. All information is provided "as is", with no guarantee of completeness, and accuracy. In no event will this site and/or  the salesperson thereof be liable in contract or in tort, to any party for any decision made or action taken in reliance on the information in this presentation/document or for any direct, indirect, consequential, special or similar damages. Past performance may not be indicative of future performance.