Even after a full year of the pandemic sweeping across nations, we are still experiencing the repercussions and aftershocks. From social distancing, to government regulations, COVID-19 has forcefully changed the way many of us live our lives. And that’s not all! The pandemic has also severely impacted various industries and sectors, including the construction industry – an oft-overlooked, but vital industry for homeowners and property investors.
Let’s take a quick look at the situation. Since COVID-19 broke out in 2020, border control measures were implemented, exacerbating the already-tight labor crunch and restricting the number of foreign workers coming into Singapore. Most recently, with the rise in COVID-19 cases originating from India, the inflow of migrant workers from India & Bangladesh has been further restricted, causing an even greater labor shortage, particularly in the construction industry.
Construction companies are now besieged with operational headwinds such as unexpected rising costs in order to attain foreign manpower, and logistical delays in timed projects. One silver lining in this dark cloud however, is the option for construction companies to apply to adjust the value of their business contracts. With this, they may be able to prevent more losses than they are already experiencing.
You may be wondering, how will this construction labour crunch affect you and your next home?
Well, the construction industry is closely tied to the real estate industry. In fact, we are already seeing the early repercussions of this shortage, with new launch TOP dates and BTO flats being delayed. This is likely to continue for quite some time, as Singapore and the world continues to experience the ongoing effects and future aftershocks of the pandemic. This also means that homebuyers will likely have to wait a much longer time for new launches to be ready, delaying their own timelines as well. For buyers facing a time-crunch, they might choose to look elsewhere, such as the resale markets. This will undoubtedly bring a surge in demand for the resale markets, therefore pushing prices up even further.
In light of the current economic situation, do you think you should be investing in a new launch or a unit in the resale market? If you are unsure which option might be more suitable, UnlockHome is here to guide you along, and help you make the best investment decision for your unique needs. Visit our website at www.unlockhm.com and drop us a message today. We look forward to hearing from you!