When a crisis occurs, regardless of its type, it is hard to foresee what will happen and how industries will adapt. Concerning the real estate market, it seems that things are looking better than expected. Due to technology, homebuyers can enjoy virtual tours of properties, minimizing the need to go out and make room in their daily schedule. Also, it is expected for things to evolve even further, as new means may soon be adopted so that homebuyers and investors meet their needs and requirements in safer and more convenient ways.
At the beginning of the Covid-19 pandemic in Singapore, the majority wondered what will this mean for the real estate market. Will it stop completely or slide on a downward spiral? The most pessimistic believed that this year prices will drop significantly, touching unprecedented records. However, the Singapore property market proved to be quite resilient, surprising everyone with its evolution. Of course, this did not happen by chance, as it was the sum of several efforts meant to keep the market on the floating line, if not even in between normal limits.
The first measure was adopted by the local government, which provided job protection aid and packages containing stimuli. This strategy was meant to keep people safe from the slowdown of the economy, triggered by the closure of businesses and various difficulties. Then, the loan repayment moratorium emerged, so that the loss of jobs was kept from creating a large shock wave.
Implicitly, it helped minimize the distress rising around property selling. Also, it is believed that a low-interest rate background was a supporting factor as well. Due to its presence, people didn’t lose their courage to invest in properties. And as history showed us, people living in Singapore prefer investing in residential properties, which may represent a highly valued asset even when times are tough.
Still, the market did not roll without a stop. Let us not forget about the circuit breaker that took place in April. This led to a significant slowdown regarding transactions, but it was a matter of time until things resumed almost back to normal. What made this comeback possible? People started to use technology in their favor, employing videoconferences, virtual tours, and advanced communication methods to keep things going. Not to mention that digital marketing spiked, as real estate agents did their best to capture the attention of potential customers. To all of this was added the digitalization of the documentation required to close sales, which allowed remote processing of transactions.
Once the circuit breaker ended, a clear spike in sales was noticed. However, we should pay attention and not consider this spike as a performance increase. More precisely, it is a recovery of what was lost during the circuit breaker. Concerning low-interest rates, they may be around for a while, as a way to continue stimulating property sales. Even if the economy, at a global level, is not yet back to its full-throttle, everybody is looking at 2021 with high hopes. It is expected for things to improve, as sustainability is aimed to be achieved in the level of prices and sales volume of homes.
Learn more from the website below
https://www.straitstimes.com/business/property/how-covid-19-pushed-the-property-market-to-adapt
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