Is it a good time now to buy Singapore property with all the Covid-19 pandemic and most businesses and stock heading downstream? Well, if you spend some time do some research and shipping, this could be a lucrative opportunity.
Property prices have since dropped 1.2% in the 1st quarter fo 2020 with a sign of further downtrend expected. In fact, analysts predict that property prices set to fall about 8% year on year. On top of that, the 2018 enbloc fever further add more units to the property market.
Developers will therefore more motivated to price their units more competitive as the number of units accumulated over the years and more new launches coming on board.
This is especially in the core central region where about 50% of the launches are happening.
Resale market on the other hand, more motivated sellers will have to drop their prices lower in order o sell on the current market for the respective buyers to bite. Its definitely a good time to shop for good buys on the market.
Low Interest Rates
US Federal Reserve has dropped their interest rate close to zero to aid current economy that is hardly hit by the Covid-19 pandemic.
Singapore Interbank Offer Rate (SIBOR) is closely linked with the US and thus will see Singapore bank offering lower interest rate too, and thus lower bank mortgage loan. Home buyers can therefore make use of this opportunity to purchase their property and secure mortgage loan at low interest rate.
US Federal Reserve has put on hold increment in interest rate since early 2019 due to slow growth and sluggish inflation, both in China and Europe.
It’s important to borrow within your means and don’t overstretch as property can be a big ticket item even though you can highly leverage and can borrow up to 75% loan.
With the circuit breaker measure in place, developers will have to close all their sales gallery from 7th April to 4th May. With the rise in new cases for coronavirus, everybody has to do their part including developers and realtors to ensure the safety for every buyers.
Prior the implementation of circuit breaker, developers too had already adopt measures by measuring visitor’s temperature, fill up declaration form, frequent cleaning of premises and also limited showflat visitors at any point in time. Ola EC developer even adopt online balloting to reduce human to human interaction.
Property Review has implemented 360 virtual tour on projects where buyers can “view” the showflat virtually and click and interact with it as though they are “walking” through the showflat itself at their home without the need for any physical interaction and brochure will be email to buyers with an enquiry signup.
Savvy investors who wish to proceed with the purchase thereafter can proceed to sign the PDI. This PDI states buyer particulars and can be digitally send to them without the need for physical interaction although buyer true identity has to be first verified. Thereafter, the buyer can do electronic payment to developer project account instead of the traditional cheque and cashier order.
Still, under the eyes of the law, the Option to Purchase (OTP) together with the Sales and Purchase Agreement (SNP) still has to have wet ink on it, which also means there will still have to have some physical interaction to certain extend.
Buy Low Sell High?
Warren Buffet favourite quote “Buy when people are fearful, Sell when people are greedy”, is the best reflection is current situation. When things go crazy, you will be buying at huge discount versus when things are in normal day to day situation. Still, one has to handle its own emotion, especially when buying when people are fearful and lockdown in the city with businesses close down and going bankrupt.
From previous recession during SARS period, those that bought during those period make huge profit just within that 4 years period from 2003. Those that purchase during those period definitely laugh all the way to bank.