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Real Estate: Looking Beyond the Pandemic


As much as we strive to analyse, project, and forecast economies, nothing can fully allow us to accurately predict every future crisis that may affect our daily lives. All we can do is learn to adapt quickly and be versatile.


The COVID-19 pandemic has slithered across the globe mercilessly, impacting millions of lives and businesses along the way. The real estate market has, of course, not been spared, but it’s important to see the opportunity even within the crisis.


As we take a step back to look at trends in historical data, from the SARS epidemic, to the 2008 financial crisis, to the COVID-19 pandemic we see today, a consistent trend appears – after every crisis, the real estate market has bounced back stronger than ever.


During the SARS outbreak, property prices dropped to an average of $447 PSF, as expected when facing such a severe outbreak. However, right after the outbreak, property prices rose drastically, with a 115% profit on average for 4 years after, and an average PSF of $866! This price increase shows the resilience of Singapore’s property market, and its ability to weather through a crisis.


We see this trend clearly again during 2008’s Global Financial Crisis. Despite vacancy rates inching upward and having the residential property price index fall by 4.7%, the real estate market picked back up in less than a year, with improved economic conditions and lower interest rates.


Post COVID-19, the market will most likely follow a similar trend, and we are already seeing the early stages of market recovery. Real estate prices have been surging for the past year, with HDB prices rising for the 11th straight month, and resale condo prices hitting a new high in May. Experts predict a continued upward trend, as the world opens up further following the pandemic, and foreign investors return to Singapore’s shores. With this anticipated demand, prices are all but sure to continue increasing upwards, proving the resilience of Singapore’s real estate market even through the worst criss.


Looking to invest in a property, but unsure where to begin? UnlockHome guides you along the entire investment process, providing you with the most up-to-date market insights and insider info so you can make the best investment decisions. Drop by our website at www.unlockhm.com and give us a call today!


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