At the start of the COVID-19 pandemic during the year 2020, there were clear signs that the economic growth was slowing down and certain industries, such as tourism and real estate, in Singapore were critically affected.
The real estate industry was further affected after the Singapore government announced the circuit breaker protocol which made the development and viewing of houses impossible during that period. Potential buyers were hit by unemployment and financial difficulties as well.
People Are Still Searching For A New Home
One of the reasons that people are looking for a larger and well-ventilated house is to avoid the stress and anxiety that they or their families might experience during lockdowns.
This was a trend that appeared on a property website that stated that while remote work continues, buyers would prefer larger residences in suburban locations that offer better value for money rather than properties in commercial hubs.
Office Space Still Plays an Important Part In The Working Environment.
Although many companies started adopting the culture of working from home, it is predicted by CBRE that this trend will likely continue in 2021. There will still be opportunities in the physical office environment, especially as the hybrid workforce grows. After all, the workplace continues to play an important role in fostering employee productivity and engagement.
The Market Is Recovering
With the vaccines rolling in, many countries including Singapore are experiencing improvements in economic growth. According to property experts, the government’s quick implementation of supplemental budgets and economic stimulus to maintain high employment rates means that it will benefit immensely the property industry.
According to Sun, one of the largest buyers for the last two years came from China and they will most likely continue to invest in development in areas like IT, bioscience, and healthcare. It is within expectations that they might move on to investing in Singapore’s real estate.
How You Can Make A Profit In Properties In 2021?
Despite the COVID-19 pandemic’s setback in several countries throughout the world, analysts in Singapore are noticing indications of growth in the real estate sector.
In 2020, the market saw a 2.2 percent rise in prices of private properties which was lower than the 2.7 percent increase in 2019. In the last quarter of 2020, the price of private properties rental increased by 0.1 percent, which was a slight improvement from the third quarter’s 0.5 percent decline.
Overall, in 2020, rental prices decreased by 0.6 percent whereas, in 2019, there was a price increase of 1.4 percent. What is certain is that many people still believe the Singapore real estate market is a good investment.
In Conclusion
With every crisis comes opportunity. This pandemic has affected markets globally, but given the right timing and decision to invest, this may be the best time to go into property investment.
Our investing decisions are also influenced in part by the framework of our experience, and our thought process and learning experience grow with time. So start learning more about property cycles, look at more case studies and decide how much are you willing to invest in real estate. If you do not have the time to learn, or want to leave it to the hands of experts, you can consider investing through REITs or co-investing platforms like Cadre, Crowdstreet or RealVantage today.