Is Covid-19 Causing A Strain on Our Real Estate Market?
Updated: Jul 6, 2020
This would probably be the question that many people are thinking about at this very moment in time. Actually, right at this moment, the answer is actually a NO.
You would have probably heard the very same from another realtor and thinks that it is just another standard answer for any agents to give you. Haha. But before we really think it that way, spare me a few minutes as we go through with you why do we say so.
Looking at just the past couple of weeks, we see an amazing attendance in sales galleries of new launches. Taking 2 of the recent launches as examples, Parc Canberra which is an Executive Condominium near to the new Canberra MRT and also The M which is in town, just next to Bugis MRT. Parc Canberra was launched on 15th February and The M was launched on 15th-16th February.
According to the gov.sg update dated 16th Feb, we have a total of 75 confirmed cases with 5 patients in ICU and we were already in DORSCON ORANGE, just one level below RED which is the highest level. During such a situation, it was reported that more than 2,000 people visited the show gallery of The M and more than 2,200 people visited Parc Canberra’s sales gallery. The result was Wing Tai sold 70% of the units in The M and Hoi Hup sold 64% of the units in Parc Canberra. All these adds up to be 676 units sold in just one weekend. This is a very clear testament to how Singaporeans behave when a good deal is placed in front of them. Is this an advertisement of Parc Canberra and The M, no it isn’t. But I do have to say, as we make comparisons to similar developments in the vicinity, those 2 projects were really priced to sell. So, when such deals are in the market, Singaporeans will still leave their house to queue.
Back to the coronavirus issue. All of us know that that this will pass for sure. Of course, we do not know how long it will take but with the advanced medical care in Singapore, overcoming this is really just a matter of time. If the current situation is not bringing down the prices, then when all these blows over, do you think our real estate market will creep down, or will it go up? It is up to you to analyze. We really need to know that panic buying is not just for toilet papers, instant noodles or luncheon meat. Panic buying can and has happened for real estate too! If you have any questions, please feel free to contact us and we can share more with you.