Under the threat of Covid-19, there are 3 questionable sayings circulating in the property market:
1) Government should lift unnecessary cooling measures during this difficult time.
2) A low or zero interest rate from the banks will provide cheap money for property investors.
3) With the easing of the circuit breaker, things will go back to normal and the market will recover soon.
I will clarify them one by one here in this video and answer the following questions along the way:
1. Can relaxing cooling measures prevent a major market correction?
2. Will falling interest rates drive up real estate demand and prices?
3. Is Covid-19 the culprit behind the troubled commercial property sector?
4. Why some property markets may not go back to where they were before the crisis?
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Hi,
Do you think working from home will become a new norm.
How does this affect the srata offices of below 1000sqf in and outside cbd .
If you are working in an MNC, you probably know that a part of your headcount cost is office rent (area of your cubicle or office). Your company will be happy to see you working from home. However, since office rental contracts are signed for a few years, work from home trend won’t have a big impact in the short term, though companies won’t be expanding their offices. We will see office rental and prices coming down in the next few years. Even when prices of CBD Grade A offices drop, it needs time for MNCs to move back from outside CBD.
Thanks very much for sharing your insight, as useful as always.
What is your view on district 1 properties? They seem to have underperformed the market in recent years, to a level that creates some disparity with RCR / OCR. And the impact of district property valuation – considering the future WFH trend for all, but shorten-commute for expats (to be able to walk to work instead of talking public transport to ensure social distancing)
I don’t recommend districts or projects to buy since I am not a property agent and I don’t make any commission from marketing properties. However, I do see that prime properties in CCR offer better value for money in terms of psf pricec ompared with RCR and OCR.
I totally agree with you and I do see that prime properties in CCR offer better fundamental value for money in terms of psf compared to RCR and OCR.
The housing demand from local buyers is strong in RCR and OCR plus the quantum is still within the range that average household income in Singapore can support or afford. In my opinion, it explains why the price in those area has gone up for the past 8 years, but not in CCR area ( mostly orchard and D1).