IN A TIME OF CRISIS, IS IT TIME TO INVEST?

COVID-19 has sent ripples of shock around the world and caused stock markets to fluctuate. While many are panic-buying toilet paper, some astute investors are crisis-buying properties. Should you?

How does a pandemic like COVID-19 affect property sales in Singapore?

JOE TNG, ERA Executive Group Division Director: There will be a knee-jerk reaction initially. The majority of buyers will likely wait to see how COVID-19 pans out locally and globally. However, properties – resale or newly launched – will still attract buyers if priced correctly and at a good location as the market is still flushed with cash liquidity. Asians are still very much into purchasing property, be it for upgrading or legacy purposes, and partly because of the fact that it is something that can be seen and used.

How has COVID-19 affected new launches? We hear some investors build up their reserves during the good years and pick up bargains during crises.

ISMAIL GAFOOR, CEO of PropNex Realty:

To a certain extent, the virus has had an effect. We are starting to see a slowdown, especially when it comes to buyers from Mainland China. This is partly due to the travelling restrictions that have been imposed. On the flipside, Singaporeans are continuing to enter the property market. This is mainly because developers are sensitive to the pricing of projects.

Despite the virus, two recent project launches demonstrated strong indicators of interest. Parc Canberra sold 64 per cent of its units during the launch weekend, while The M drew 2,000 visitors. Pricing is key under current circumstances as both developers and buyers have come to a realisation that such crises offer opportunities to enter the market.

Most developers are taking the necessary measures and precautions. They are screening visitors and getting them to fill in health declaration forms. Additionally, some booking processes are confined to a smaller group of people. This provides confidence to investors, consumers and the salespeople.

DAVID NG, Senior Associate Marketing Director at Propnex Realty: The launch of The M was a huge success in the face of uncertainty.

01 PARC CANBERRA The 496-unit executive condominium sold 64 per cent or 316 units during the opening weekend launch in February and despite uncertain times. The developer implemented strict precautionary measures at the showflat and even requested that people who had been to mainland China to stay away.