Is Singapore Property Market Still Resilient?
It has been more than a year since COVID-19 began, a few friends had contacted me about how the Singapore Property Market is doing?
Now, in this COVID-19 pandemic, all trades affected, especially the F&B trades, a lot of restaurants are not making money, some have even winded up.
Do you think is a good time to invest in property?
Is Singapore property markets still resilient?
Well, I guess that the fact you are here means that you have a similar question in your mind too.
How Did the Past Epidemics Affect Singapore Property Market?
Prices in Epidemic period
The chart above, clearly shows us that both the epidemics had a limited impact on the Singapore property market. Fear and uncertainty have always been the norm when prices drop at the beginning of the epidemic.
During the SARS epidemic in the year 2003, the prices and sales volume picked up. Once it is over, rebounded is quite substantially, that you hardly had time to react to it.
And history repeated itself even during the H1N1 epidemic in the year 2009, when prices and sale volume bounce back when it was over.
Historically has indicated to us that the epidemics have a limited impact on the Singapore property markets. We have seen in the short term, that they do affect the markets, and economic growth, however, it does not affect the fundamental attractiveness of real estate as an investment.
Once it is over, everything will go back to normal, and people plan to reinvest their excess funds will resume.
China for example, when the lockdown was lifted, the property markets rebounded in 30 major cities. Are we likely to see the same in Singapore?
Active Government Intervention In The Property Market
In my opinion, the government's active intervention in the market is the reason why prices are very stable and very likely to be resilient even within this COVID situation.
Singapore Property Price Index
Supply And Demand Of Properties In Singapore
Singapore is gearing up our population growth of 6.9 million by the year 2030. The projected target by the government never changes but due to the COVID, hopefully, we can hit the numbers. As for now, our population is at 5.61 million, there is a difference of 1.29 million. Averagely, Singapore must increase by 129,000 people annually, or there is equivalent to 32,250 new homes per year.
The Singapore Property Market Is Still Resilient
Private Residential Developer Sales (Excl.EC)
In the year 2020, the average monthly sales for the 1st quarter is 752 units monthly before the Circuit Breaker of the COVID-19 takes place. interestingly, even without physical viewing of the show flats during this circuit breaker period, there were still 277 units sold in April 2020.
Is It A Good Time To Enter The Property Market Now?
Especially during such time, developers are giving discounts to buyers who are willing to pull the trigger to enter the market now. In crisis lies opportunity, in my opinion, it is the best time to enter the market now because the developers are giving discounts to buyers that would not otherwise have existed if there were no COVID.
At the same time, the bank interest rate is so low, it will be another period of historical low with the FED in the US pumping up a lot of money, a lot of stimulus over the next, probably 1 or 2 years, at least you can enjoy low-interest rate and enjoy a lot of saving for the next 2 year.
Singapore Government rolled out Four Resilience Budget
Singapore COVID-19 Resilience Budget
During this pandemic, the Singapore Government rolled out four rounds of budgets during this COVID-19 circuit breakers period (almost S$194 billion of relief and grants) to ensure that all trades can sustain and maintain the jobs for all Singaporean.
The budgets were rolled out to make sure that in this pandemic, minimum impact on all Singaporeans and SMEs. With what the government has done so far, I believe that the economy will go through a quick rebound when the circuit breaker is fully lifted.
Singapore Has A Stable Political Environment
Hong Kong is one of Singapore's strongest competitors in terms of attractiveness as a wealth hub. Recently with the political crisis in Hong Kong, many investors have started diverting their investments to Singapore. And the reason why? Because we have a very stable political environment.
Investor seeks safer places that are free of political risk and economic risk so that they can have their investments work safely for them.
Singapore Has Emerged As One Of The Best Financial Hub Globally
Transparent in all financial sectors, low corruption. Singapore has become one of the best Financial hubs globally.
Strong Appreciating Currency Track Record
Mr Jing is a Korean, he invested in property in Singapore in 2012 cost him S$1M. The exchange rate for Korean Won is 1:924, so the Korean won is $924M
In the year 2015, he sold the unit at S$1M, and the foreign exchange rate for the Korean won increased to 1:805, which give him in Korean Won $1.147M. In return, due to the difference in Korean Won, he makes a profit of Korean won of $223M, which is equivalent to S$277K.
Singapore Is One Of Top Logistic Hub In Asia
With our geographical advantage, Singapore has emerged as one of the main transit points globally since 1825. We are not only a major trading port of core for the world but also have a top airport in the world.
With our strong infrastructures, Singapore has emerged to be one of the top logistic hubs globally. Because of that, many foreign companies and M&C have their regional headquarter based in Singapore.
As a result, many of them relocated their staff to Singapore and such increased the tenant's pool for an investment home.
1. Singapore properties are very likely to remain resilient throughout these passing storms.
2. We have a very proactive government that doing its utmost to intervene in the markets to ensure that employment and incomes stay healthy so that correspondently our property market will remain robust.
3. Singapore government has a proven track record of managing our country throughout various crises and pandemics. As a result, there is faith that this time around we will be able to create a quick recovery and ensure that our citizen's livelihoods are well-taken care of.
Every investment requires proper planning, and as a Property Wealth Planner, I am glad to be able to help you come out with a road map for your property investments and provide you advice on the way.
Please feel free to contact me at the number 94896105 for free 30 minutes consultation.
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About the author
Peter Tan Choon Guan, The Real Estate Guy.
District Director with Huttons Asia Pte Ltd
Since 1995, he has been providing professional consulting services to clients in Singapore and beyond. From strategic planning to innovative solutions, his focus is always on building an efficient and results-driven relationship. He will work with you to create a customized plan of action for yourself or your organization.
Peter is an adventurous person, he is a basketball player since school times, and represents schools and organizations in the National Tournament. He is also active in track and field, participated in school events and national events, and got a bronze medal for his Long Jump events and a silver medal in his 100M run.
Water sports in another area he is interested in, obtained a few medals for his canoeing competition. He conquered Mount Kinabalu in East Malaysia, Mount Tahan, and Mount Ophir in East Malaysia.
He is enlisted into National Services as Naval personnel, a Section IC in his department. Appointed to Acting Platoon Sergeant during his Reservist.
During school times, he is a class monitor and a school prefect during his primary school time. Become a youth leader in a later stage. All the exposal created him a leader by nature, able to train and guide people.
Started to run in own business in the year 1995 and ended business in the year 2013. This allows him to be able to communicate at all levels of society. Joining the Real Estate Industry in the year 1995 as a part-timer, after he ended his business in 2013, he focuses on Real Estate consultation, not only starts to invest in property himself, he also assisted more than 350 property investors to build their wealth in property investment.
With his hand on investment himself, he will be able to provide you with real-time property insight and strategic planning for your property investment through Property Wealth Planning System.
WhatsApp Peter if you need any assistance. If you do like this article, please give me some comments and like.