COVID-19 Phase 2: To Buy Or Not To Buy Property, That Is The Question

Updated: Jan 4, 2021

Singapore property market outlook agent
Is it time to enter the Singapore property market?

Finally, today at 715pm, the announcement of Singapore entering Phase 2 of Circuit Breaker re-opening was made!

How wonderful that we finally will be getting back much of our freedom - the simple joys in life from eating our food at a coffee shop to bringing our kids to the playground.

While this news has brought about much needed cheer and optimism, many property investors waiting on the sidelines caution that this does not fundamentally change the fact that we are heading into uncharted waters in lowered GDP and unemployment figures.

By now, it is clear that the world is going through a crisis that's bigger than anything seen since the Great Depression.

This message has been echoed by many authorities from our Prime Minister and cabinet ministers, the World Bank and IMF and it doesn't take a genius to point out the obvious implications.

So begs the question:

Where in the world is it economically safe from COVID-19?

Does it automatically mean that any country becomes attractive as an investment destination just because it has COVID-19 under control?

I would like to preface my sentiments with a short macro market outlook that i shared with my team back in Dec 2019, when the first signs of the virus emerged.

A Constant State Of Disorder

It occurs to me that the world is in a constant state of conflict - At any point in time, somewhere in the world, a major conflict is bubbling and threatening global trade and oil prices.

By now, if you are in your 30s or older, you should have seen enough and gotten used to this fact of life.

In more recent times, apart from the COVID-19 situation, we are spectators to the US-China escalated tensions and blame games, the never-ending Taiwan drama-esque titled "BREXIT", the bitter rivalry and trade tensions between Japan and Korea, and the revolution in Hong Kong.

Instability of financial hubs and wealth centres around the world.
Instability of financial hubs and wealth centres around the world 2020

In the midst of these chaos in major economies around the world, massive money supply still exists and continue to be created as we speak, as a result of low interest rates and the stimulus that has hit the world since 2008.

Sadly, as history has shown, the wealth divide gets wider during such times and the rich will get richer, and the poor poorer as a result of asset bubbles where too much money chases after too little assets.

In stormy seas, capital seeks safe harbours - safe assets which help preserve capital and prevent erosion from volatile markets or inflation.