The world is currently facing a pandemic-induced recession. Meaning, the economic situation worldwide is currently diving. This situation started when the pandemic caused almost every country in the world to implement lockdowns and circuit breakers. This measure was taken to prevent the further spread of the virus. However, due to this, the activity of the population has also reduced.
People started doing everything in their homes as instructed by the government. This has accused the activity outdoors to slowly decrease, affecting businesses from all industries. Since there are no consumers outside to buy goods and services, there was no money gained ever since the lockdowns and circuit breakers have taken place.
No business can survive without profit. Therefore, during the past month, many industries have taken the hit of the recession. Some were forced to completely shut down as they cannot sustain their business anymore. This is true to almost all markets in the economy. It was either the prices of these products were lowered to the point that capitals and profits break even or they stop operations.
Singapore during the global pandemic
Singapore, although known to have one of the most stable economies in the world, was not spared from these effects. Various industries in the country also felt the negative effects of the long period of circuit breakers. Many establishments and long-running businesses were also forced to shut down as they cannot sustain their business anymore due to a lack of customers. However, the property market has stayed relatively resilient compared to the other markets. There are many factors as to why this has happened. So, in this article, let us talk about the reasons why the recession did not affect housing prices.
Reasons why the recession did not affect housing prices
#1 New businesses and investors
The Singapore economy was also hit by the effects of the pandemic. However, relative to its neighboring countries, it is the least affected. This is why businesses and investors continue to invest in the markets of Singapore. They have found that Singapore is the best option to invest in during a pandemic. With the continuous increase of new investors, job opportunities also are increasing. That is why more individuals from all over the world also chose to migrate or take their chances in Singapore. This has made the demand for housing consistent. These new residents have to buy property in Singapore to be able to settle down. This demand has also made property prices Singapore costs to be unaffected. As new individuals buy property in Singapore, the current housing prices stay the same.
#2 Property as an investment
The other markets in Singapore were greatly affected. Businesses from these markets were forced to close or shut down to prevent further loss. As people who need to survive, they tried to find ways to secure a stable investment. One of the things that they deemed to be a wise investment is to buy property in Singapore. Due to the high property prices, the property is one of the things that can be considered to have a sure return. This is because people will always need property even after the pandemic. Thus, the property market will always be there.
Unlike the food and beverage industry in which products will be spoiled and therefore cannot be sold, properties can be kept for a long period. It doesn’t have to be immediately consumed or sold to be able to make use of it. This is why many individuals opted to buy property in Singapore as financial security. The number of individuals that bought property has maintained the current high property prices Singapore value.
#3 Constant demand
With the first two factors in play, it is safe to say that there is still a constant high demand for property in Singapore. People continued to buy property in Singapore making the number of demands constant. The property prices Singapore cost was not a hindrance for other individuals to buy or invest in one. The consistently high demand for property maintained the high property prices Singapore fees despite the pandemic-induced recession. Contrary to what was supposed to happen, the Singapore property market has remained resilient.
Buying a property is a serious matter especially because of the high property prices Singapore values. That is why one should research and read first before deciding to buy one. Many factors can affect the property prices in Singapore so be sure to be well-knowledgeable about them. Visit SRX Property today to know more!