With the current Wuhan virus going around the world particularly South-East Asia countries, many may wonder how it will affect the price of properties in Singapore?
Let us recall the similar situation happened in 2003 which SARS hit Singapore and sent panic signal to the market.
The chart was extracted from Straits Time, from 2001 which Dotcom bubble burst price have been on the downtrend. Then came the SARS in 2003 brought the price of Singapore property to the lowest point since 1998.
From the past price trend, we noticed government tend to relax the rules governing the housing market when the price is stagnant or deem to be lowest point. This is evident in 2004 where government eased rules for foreigners to buy lands in Sentosa. Prior to the announcement of integrated resorts (IRs) by government, the price already rising on the uptrend. The key turning point happened at the end 2007 where deferred payment scheme was scrapped followed collapsed of Lehman Brothers.
Since the first implementation of cooling measure in 2009, the rest is history.
We were strongly believed the impact of Wuhan virus will have knee-jerk reaction initially and gradually recover to the norm as home buyers already have adapted from past experience and those owners who bought during SARS in 2003 definitely make a significant profit when they choose to sell anytime from then.