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Should You Consider Purchasing A Property During COVID-19?

We are in the midst of the worst pandemic in history. The virus has a worldwide effect and experts are predicting the worst recession since World War II. At the time of writing, the virus had infected more than 3 million people worldwide with more than 200,000 fatalities. This pandemic has also affected many businesses and livelihoods with bankruptcy on the rise and many jobs lost.

But not all is gloom and doom! Here in Singapore, the Government has implemented a series of support packages to help businesses, workers and families tide over this difficult period. While there is a threat of looming recession, opportunities are also abound. History has shown that after every depression, recovery usually follows and many a times, very quickly too! So, this may be a good time to look for investment opportunities. And in land scarce Singapore, one of the best investments is of course, property.

So what are the benefits of buying a property during this pandemic? Let’s look at several factors.

1. Cost of borrowing is down. SIBOR is likely to be going down even further as countries look to cut interest rates. The lower the interest rates, the more likely are people to make big purchases. The less you pay on interest means you have more cash in hand. More cash means you have money to spend on other essentials and this will encourage big ticket purchases.

2. It’s a buyers’ market. Faced with uncertainties in the job market and the economy, borderline buyers may need to hold off their purchases for the time being. Coupled with the absence of foreigners making purchases due to travel restrictions, there may be an oversupply of unsold units. This gives serious buyers an upper hand in terms of price negotiations and you can have the pick in terms of location, unit size and type.

3. Singapore has a resilient property scene. Singapore remains one of the most attractive markets to invest in properties. With the recent turmoil and unrest across Asia, Europe, and the United States, Singapore maybe one of the best places to invest in property right now. History has shown that after every depression, the Singapore property market rebounded back much stronger than ever. According to URA statistics, during the SARS period of 2003, total volume dropped 41% in Q1 2003 when SRAS started and rebounded up 147% in Q3 2003 after the recovery.

So there you go, if you are in a sound financial position with good job security, this uncertain time is a great opportunity to find sound investments. Your competition is dropping off and you have a myriad of choices to pick from!


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