Are Property Cooling Measures on the way?

As covid-19 strikes in Dec 2019 and started the lock-down, it was initially thought that everyone will be affected. However as seem in most crises, some industries and  people continue to do better than others. Likewise, in the Covid-19 economy, it is a tale of two economies.

As always, the rich will be richer and the poor will be poorer. A K-shape recovery looks poised to take place in 2021 as some economists have hinted. What does a K-Shaped economy mean> It means that when the recovery gains pace, not everyone will benefit.

We think cooling measures may not come yet although the property market has heated up in 2020 especially in the sales of new homes. This is because the property price index rise is still within a reasonable and acceptable range. However, one should not dismiss any talk as rumour.

Whenever there’s talk on the heating market, the next step is to cool it. However, when it happens is anyone’s guess. Having said that it may be premature to talk about cooling.

The main question for investors is what should you do now? Should they sit on the sidelines and do nothing? Remember in 2020 when the pandemic struck and the economy went down, there was lots of prediction that the sales and prices of homes will head southwards but this scenario did not happen. Instead, the market and the price went northwards.

In our view, ignore the short term noise and plan for the long term.

If that’s the premise of your investment decision, it does not matter when you buy. Why?

There is always opportunities in the market. The reason is that prices will continue to rise as there is a limited supply of land in Singapore. In addition, the political environment is rather stable. Investors like a stable government as it allows them to plan ahead.

Always Always due your due diligence in terms of your finances