With the COVID-19 spread on a rise, many are undoubtedly worried about the economy’s health.
While we still cannot predict the exact impact of the coronavirus in the next couple of months, we can reference and make a rational judgement with past data.
As shown in the graphs below, property prices in Singapore were stable during the 2003 SARS epidemic. While stocks and shares may have experienced a drop, property prices were less volatile and one can say were slower to react to the poor market sentiment. Although it is still early to tell the impact of the coronavirus on the property market, the numbers tell a positive story so far.
***SARS: Severe Acute Respiratory Syndrome; the virus that saw to a global widespread in 2003.
*** GFC: Global Financial Crisis
Referring to The Straits Times’ article ‘Condo resale prices and volume rise in January, ahead of any coronavirus impact’ released on 11 Feb 2020, Ms Christine Sun from Orange Tee & Tie commented that the property market is not directly hit by the virus as compared to other industries such as tourism. In the same article, it is mentioned that prices and sales of private properties in Singapore “edged up” in January 2020 – increasing 0.5% and 4% respectively from December 2019. This further demonstrates the minimal impact of the coronavirus outbreak on property.
What does this mean?
This is a clear testament to the stability of property investments. There are no doubts of periods where prices may falter but as one of the many benefits of property investments – owners and investors have holding power. With the right guidance and research, property owners can enjoy capital appreciation.