Covid-19 and its impact on property

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Since January 2020, Covid-19 had been the utmost concern of many countries. The spread escalated and because of that, countries started to close and lockdown to prevent the spread. With this situation, and stock markets are falling into the red. Because of this, many started to ask if property prices will drop or even crash. We are all very concerned!

I started to read the reports by OrangeTee Research and also Edmund Tie and Company Research to find answers. Besides that, I started to look into the past events and transacted prices all the way back to 1996. In order to find any trend due to events or crisis that happens especially now that covid-19 virus is affecting everyone.

Private Residential Property Price Index

After researching on the events and how the prices of the market moves, I found this graph from With this graph, we can conclude that even if there is any drop in price and if you are able to hold the property, the prices will still goes back up eventually.

External Events where Property prices drop:
1997 – Asian Financial Crisis
2000 – Dotcom
2008 – Lehman Brothers Internal Events where Property prices drop:
2013 – Implementation of TDSR

With the above external and internal events, the prices eventually increased gradually.

Virus affecting the economy:
2003 – SARS
2009 – H1N1

During these 2 events, we can see that the property prices dropped slightly for a few quarters and picks up quite fast afterwhich.

Property prices transacted from 1995 to present:

Data and graph extracted from The graphs shows that prices eventually appreciated overtime. In conslusion, property prices in Singapore will eventually appreciate overtime. And yes, prices do slip during events or crisis. But having a stable regulatory body, we are confident that property investment is still a good investment in the long run.

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