Property Surges During COVID-19, What Does This Mean To The Property Market?

Despite the handful of unprecedented challenges brought by the pandemic such as worsening economic conditions and weakening of hiring prospects, Singapore real estate has remained resilient and a hot property among homebuyers and investors alike.

According to official figures by the Urban Redevelopment Authority (URA), new home sales in August 2020 have seen a surge, reaching an 11-month high due to pent up demand. On top of this, condominium resale volumes have hit a 2- year high! What does this show about the current property market?

Firstly, buyers remain confident in the market and they further ascertain the position of real estate being a safe-haven asset. Based on historical trends, the next low in property prices will never fall below the current one. Especially for private properties where a 157% growth has been observed over the past 2 decades, Singapore properties have proved itself to be resilient towards economic downturns.

Secondly, it is now more affordable to purchase and finance a property with the record low interest rates. With Singapore entering a 2 month long lockdown, new property launches were being delayed and buying activities were forced to put to a stop. This encouraged developers to offer better prices in the form of massive developer discounts and added benefits when the measures were eased.

Furthermore, interest rates are at a record-low and the government has worked together with MAS to render support for property owners through measures such as deferred repayments and longer repayment periods.

So is it a good time now to enter the property market? Yes definitely! Whether you are a new home buyer, HDB owner, private property owner or an investor, there is something in the market for you.

If there is anything we should learn from the 2003 SARS epidemic, it will be buyers who took action in the opportune time, turned out to be the biggest winners! Within 4 years when the market recovered, property prices had doubled. One would have made an average of at least 115% in profits!

This is no doubt one of the reasons why people rush to enter the market now.

Do you want to know what are the worth-to-invest properties in the current market? We are Pamela & Shirley from Wonderhomes.sg! Click comment below or drop us a PM & we will get back to you soonest!