With COVID-19, Is There An Oversupply Risk & How's The Property Market Situation? (Part 1)

Updated: Sep 5, 2020

Post Corvid 19, is there an oversupply risk and how's the property market?
Is it too early to tell or can we make some calculated predictions on how the market will pan out?

The recent months of fear and panic has seen much focus and attention drawn towards COVID-19 related news and content.

As of today and counting, Singapore has seen zero to a handful of new cases per day, and seemingly, everything is starting to come under control.

Indeed, just a few weeks back, there were elevated fear in the markets, panic buying of household goods and a retail scene as if the “Thanos snap” occurred in real-life.

While the West and Europe is starting to experience what Asia did a month ago - a rise in infections, Singaporeans appear to have acclimatised to their fears and are slowly resuming their routines as usual.

Last 2 weekends, we were reminded through 2 project launches that Singaporeans care more about good deals than fear the virus!

Parc Canberra executive condominium was 64% sold out on day 1. The M at Middle Road was 70% sold out on its first day of launch as well.

Such is the case that i parody a famous quote of Martin Niemöller:

“First they came for the masks, I didn’t queue up because I wasn’t panicking.

Then they came for the hand sanitisers, I didn’t queue up because I had soap.

Then they came for the toilet rolls, I didn’t queue up because there’s always water.

Then they came for the good property deals, and there was nothing left for me."

- Property Investor Woes 2020

Of course, this is written tongue in cheek.

There will always be good deals out there if we look hard enough.

But truly, underneath all this, we can tell what the actual pulse and market demand is.

It is RED HOT like burning amber beneath a layer of ash by which a slight gust whether in price, cooling measures or sentiments tweak can bring about a flurry of activity instantly.

Now, why is this so?