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Will The Singapore Real Estate Market Remain Resilient Throughout COVID-19?

Is Singapore property market still resilient
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
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 Markets is resilient
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)