The majority of the countries in the world are experiencing a recession. This is rooted in the virus that has affected everyone. The virus has caused all countries, even the biggest countries in the world, to implement lockdowns and circuit breakers. Meaning, all residents were told to stay at home and reduce human activities in the streets.
All academic activities were put on hold and all offices were transferred at home. During the last nine months, almost everyone in the world has been doing things from home. Classes have resumed but through online ones. This lockdown has caused a slow economic activity. It caused the stock market to dive as consumers had no choice but to stay indoors. This unfortunate situation forced many establishments and businesses to shut down as they are losing more than gaining. Almost all industries and sectors in the economic market were affected. This slow down in the economic activity has affected the prices of every goods and service available including the property prices Singapore value.
Before the implementation of the circuit breakers, one of the most active markets in Singapore is the property market. People buy property in Singapore as a necessity and an investment. There used to be a high demand for property in Singapore that it is one of the major industries in the country. However, it was not spared from the ill-effects of the pandemic-induced recession. As residents were forced to stay indoors, the property market has been affected. Factors like property prices Singapore values were directly affected by the recession. As this year is ending, let us talk about the 3 things that will happen to Singapore property in 2020.
#1 CCR Properties will feel the effect of the recession
The CCR or also known as the Core Central Region properties are those properties that are high-end and more luxurious than average ones. Owners buy property in Singapore like this one to be rented out to rich ex-pats. Expats are foreigners that are working in Singapore, These expensive properties target those kinds of markets as they are the ones who can afford more expensive properties. However, due to the characteristics of the market of CCR properties, they may feel the effects of the recession as the year 2020 ends. Since lockdowns and circuit breakers are implemented, ex-pats are also forced to go home to their countries to avoid being stuck in a foreign one.
Due to the recession, employers tend to hire local employees over foreigners as local employee costs are cheaper. Expats also avoid working in foreign countries when there is a recession due to shrinking allowances, thus it may hinder them from renting decent housing since property prices Singapore fees are high. These factors affect the flow and number of tenants in CCR properties. Thus, it may cause landlords to lower property prices Singapore costs when it comes to CCR Properties.
#2 Commercial properties will also take their first hit
The commercial spaces will also feel the first hit of the recession. As offices are slowly being done from home, companies would need to lease big commercial spaces anymore. Employees can continue their work in the comforts of their homes. Therefore, companies wouldn't feel the need to buy property in Singapore for their offices. This is because their employees won't be needing these establishments to be able to keep the company running. This will lessen the demand for commercial spaces, thus lowering the property prices Singapore costs when it comes to commercial units.
#3 Developers will put further developments on hold
The demand to develop more property is rooted in the number of people who buy property in Singapore. However, as economic activity and the flow of people outside is being put on hold, the demand is also slowly decreasing. With this, there will be fewer future developments to avoid an oversupply of property. No developer would want to invest in a market that is currently not profitable. Thus, many developers will lessen or stop the construction of new properties in Singapore. There may be little to no new developments in the busy streets of Singapore for the first quarter of 2021.
When you are planning to buy property in Singapore, it is important that you know what you're getting into. Buying property in Singapore costs a huge amount of money therefore being one hundred percent sure is necessary.
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