Seems like a doomsday situation right? Stock market dropped so much! Retrenchment worries, sales and profit numbers dropped drastically! Siao liao! Property market how? Any fire sales or lelong? We receive enquiries like this quite often in the past few weeks. Let us logically navigate through these tough times.
Something for you to think about (tap here)
- Will the COVID-19 remain for many years and bankrupt all the economies of the world?
- If during COVID times, developers are still selling just by using virtual tours and zoom, do you think sales will improve or drop even more when COVID is lifted?
- If sales will improve after COVID lifted, do you think prices will go up or down?
- Will sales and prices remain low forever? Check SARS time property prices and after.
We are not fortune tellers, there’s no one that can tell accurately how COVID-19 will play out. How much prices going to fluctuate or will there be a crash. What we can do is to use the facts to best-guess the direction going forward.
Our “prediction” based on facts (tap here)
- Government help in many ways to help Singaporeans keep jobs, defer payments and some money to tide over tough times. Banks approve 90% of 31,300 mortgage deferment applications. This in turn prevents borrowers from encountering repayment difficulties, and the effect is stabilized resale home prices. In short, “Lelong” will be kept at a minimum when people can have better holding power therefore won’t be desperate to sell, thus WILL NOT drive down the prices drastically.
- COVID-19 will end eventually and prices will gradually go upward just like SARS, Global financial crisis. When will it go up and how high it would go, we cannot predict, but analyzing the property cycle chart, the property price index will always surpass previous highs. Property investment should always take a long-term approach.
- Prices will hold if buyers are steadily buying. Put yourself in the developer’s shoes, if i can sell in these tough times, why should i give more discount and drop my profit?
All the information above are of our personal opinion. If you feel that you need more information, whether you’re thinking of buying a property or selling, feel free to drop us a msg.
What we’d suggest you can do in this downtime, make use of the available free time, discuss with family how you’d like to do going forward and come to a consensus. Different families have different needs, some are looking to expand while others are looking to right-size to a smaller home. If you’re young (under 50 y.o) there will be at least 1 more chance in the property cycle for you to profit from. Check your home valuation here. Or learn how to calculate your potential profits in this post here.
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