{"id":41141,"date":"2021-03-22T10:01:07","date_gmt":"2021-03-22T02:01:07","guid":{"rendered":"https:\/\/zegal.com\/?p=41141"},"modified":"2023-03-20T15:44:30","modified_gmt":"2023-03-20T07:44:30","slug":"how-has-covid-19-impacted-singapores-real-estate-market","status":"publish","type":"post","link":"https:\/\/zegal.com\/en-hk\/blog\/post\/how-has-covid-19-impacted-singapores-real-estate-market\/","title":{"rendered":"How has Covid-19 impacted Singapore\u2019s real estate market?"},"content":{"rendered":"<div class=\"_1yEvn\">\n<div class=\"_2wZrM _2E3OB _3BIio\" tabindex=\"-1\" data-hook=\"post-title\">\n<p class=\"_1gHzn _2M4wi blog-post-homepage-title-font blog-post-homepage-title-color blog-post-title-color post-title blog-hover-container-element-color _1EQZr blog-post-homepage-title-color blog-post-homepage-title-font\" data-hook=\"post-title\"><span style=\"font-size: inherit; text-align: justify; font-weight: 400;\">COVID-19 will no doubt leave a trail of destruction on the real estate landscape in Singapore. Activities in the real estate market have been curtailed by stricter border control, tighter safe distancing measures and particularly the implementation of the \u2018circuit breaker\u2019. The home rental market is unlikely to go unscathed as it is a derived demand. How then, will Covid-19 impact the home rental market?<\/span><\/p>\n<\/div>\n<\/div>\n<div class=\"yF0IC blog-post-homepage-description-style-font blog-post-homepage-description-color\" data-hook=\"post-description\">\n<article class=\"blog-post-description-font\">\n<div class=\"post-content__body\">\n<div class=\"lV_uZ _1LHlu _1ltva\" data-rce-version=\"8.7.1\">\n<div class=\"kcuBq _1PkHV blog-post-homepage-description-style-font _3f8WX uatYj\" dir=\"ltr\">\n<div class=\"kaqlz _1FQ9t blog-post-homepage-description-style-font zJfAe\">\n<h4 id=\"viewer-4ge1e\" class=\"XzvDs _208Ie ljrnk blog-post-text-font blog-post-text-color _2QAo- _25MYV _1Fao9 ljrnk public-DraftStyleDefault-block-depth0 public-DraftStyleDefault-text-ltr\"><span class=\"vkIF2 public-DraftStyleDefault-ltr\"><strong>Singapore\u2019s Circuit Breaker<\/strong><\/span><\/h4>\n<p id=\"viewer-e0prp\" class=\"XzvDs _208Ie ljrnk blog-post-text-font blog-post-text-color _2QAo- _25MYV _1Fao9 ljrnk public-DraftStyleDefault-block-depth0 public-DraftStyleDefault-text-ltr\"><span class=\"vkIF2 public-DraftStyleDefault-ltr\">Before the outbreak, <strong>Singapore\u2019s<\/strong> rental market was robust with an increasing influx of foreign professionals. Based on the latest data released by the Ministry of Manpower (MOM), a total of 189,000 Employment Passes were approved in 2019 &#8211; 3,200 more than in 2018.<\/span><\/p>\n<p id=\"viewer-2libp\" class=\"XzvDs _208Ie ljrnk blog-post-text-font blog-post-text-color _2QAo- _25MYV _1Fao9 ljrnk public-DraftStyleDefault-block-depth0 public-DraftStyleDefault-text-ltr\"><span class=\"vkIF2 public-DraftStyleDefault-ltr\">However, according to Peter Koh, HJ Real estate, COVID-19 presents a very sombre threat to Singapore. Prioritising the prevention of disease spread and safeguarding public health, the Singapore government initiated a pseudo-lockdown, also known as the \u2018circuit breaker\u2019, which started on April 7. This was implemented despite the potential economic damage and repercussions from a shuttered economy.<\/span><\/p>\n<div id=\"viewer-f407i\" class=\"q2uC4 _3kAGd\">\n<div class=\"c-Mgr _2Mq66 _2Mq66 _7gPc2\">\n<div class=\"_1Lhwj image-container _2mwxs\" tabindex=\"0\" role=\"button\" data-hook=\"imageViewer\">\n<div class=\"xdJBZ\" role=\"img\"><img decoding=\"async\" class=\"_1Fjtc _2lDdg\" src=\"https:\/\/static.wixstatic.com\/media\/d2d989_dd96b03cd40d4d68bd3b5f44fb8e36b9~mv2.png\/v1\/fill\/w_740,h_475,al_c,q_90,usm_0.66_1.00_0.01\/d2d989_dd96b03cd40d4d68bd3b5f44fb8e36b9~mv2.webp\" data-pin-url=\"https:\/\/www.fraxtor.com\/blog-1\" data-pin-media=\"https:\/\/static.wixstatic.com\/media\/d2d989_dd96b03cd40d4d68bd3b5f44fb8e36b9~mv2.png\/v1\/fit\/w_1000%2Ch_1000%2Cal_c%2Cq_80\/file.png\"><\/div>\n<div class=\"\">&nbsp;<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p id=\"viewer-ear8t\" class=\"XzvDs _208Ie ljrnk blog-post-text-font blog-post-text-color _2QAo- _25MYV _1Fao9 ljrnk public-DraftStyleDefault-block-depth0 public-DraftStyleDefault-text-ltr\"><span class=\"vkIF2 public-DraftStyleDefault-ltr\"><em>Photo by Ong Wee Jin<\/em><\/span><\/p>\n<h4 id=\"viewer-dkvcb\" class=\"XzvDs _208Ie ljrnk blog-post-text-font blog-post-text-color _2QAo- _25MYV _1Fao9 ljrnk public-DraftStyleDefault-block-depth0 public-DraftStyleDefault-text-ltr\"><span class=\"vkIF2 public-DraftStyleDefault-ltr\"><strong>Decline in Singapore real estate rental volume during Covid<\/strong><\/span><\/h4>\n<p id=\"viewer-5eah\" class=\"XzvDs _208Ie ljrnk blog-post-text-font blog-post-text-color _2QAo- _25MYV _1Fao9 ljrnk public-DraftStyleDefault-block-depth0 public-DraftStyleDefault-text-ltr\"><span class=\"vkIF2 public-DraftStyleDefault-ltr\">As the circuit breaker kicked in, the month-on-month percentage drop in rental volume was the highest since 2011. Flash data released by real estate portal SRX Property on May 13, estimated that the number of non-landed private homes leased decreased by 36.5 per cent, from 4,829 units in March to 3,068 units in April. April&#8217;s rental volume was also 40.6 per cent lower than a year ago and 32.3 per cent below the five-year average.<\/span><span class=\"vkIF2 public-DraftStyleDefault-ltr\">&nbsp;<\/span><\/p>\n<p id=\"viewer-6p9ri\" class=\"XzvDs _208Ie ljrnk blog-post-text-font blog-post-text-color _2QAo- _25MYV _1Fao9 ljrnk public-DraftStyleDefault-block-depth0 public-DraftStyleDefault-text-ltr\"><span class=\"vkIF2 public-DraftStyleDefault-ltr\">SRX&#8217;s estimations also showed rental decline of 0.9 per cent for private condos and apartments in April. Year on year, despite rising 1.8 per cent in April, private rent is down 15.7 per cent from its peak in January 2013. <\/span><\/p>\n<div id=\"viewer-1m051\" class=\"XzvDs _208Ie ljrnk blog-post-text-font blog-post-text-color _2QAo- _25MYV _1Fao9 ljrnk public-DraftStyleDefault-block-depth0 public-DraftStyleDefault-text-ltr\"><span class=\"vkIF2 public-DraftStyleDefault-ltr\">&nbsp;<\/span><\/div>\n<div id=\"viewer-enctc\" class=\"q2uC4 _3kAGd\">\n<div class=\"c-Mgr _2Mq66 _2Mq66 _7gPc2\">\n<div class=\"_1Lhwj image-container _2mwxs\" tabindex=\"0\" role=\"button\" data-hook=\"imageViewer\">\n<div class=\"xdJBZ\" role=\"img\"><img decoding=\"async\" class=\"_1Fjtc _2lDdg\" src=\"https:\/\/static.wixstatic.com\/media\/d2d989_5f0f94d01aab4ec5b82fc6fa79aff9da~mv2.png\/v1\/fill\/w_740,h_201,al_c,q_90,usm_0.66_1.00_0.01\/d2d989_5f0f94d01aab4ec5b82fc6fa79aff9da~mv2.webp\" data-pin-url=\"https:\/\/www.fraxtor.com\/blog-1\" data-pin-media=\"https:\/\/static.wixstatic.com\/media\/d2d989_5f0f94d01aab4ec5b82fc6fa79aff9da~mv2.png\/v1\/fit\/w_1000%2Ch_414%2Cal_c%2Cq_80\/file.png\"><\/div>\n<div class=\"\">&nbsp;<\/div>\n<div class=\"\">&nbsp;<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div id=\"viewer-2vrec\" class=\"XzvDs _208Ie ljrnk blog-post-text-font blog-post-text-color _2QAo- _25MYV _1Fao9 ljrnk public-DraftStyleDefault-block-depth0 public-DraftStyleDefault-text-ltr\"><span class=\"vkIF2 public-DraftStyleDefault-ltr\">&nbsp;<\/span><\/div>\n<div id=\"viewer-amdki\" class=\"q2uC4 _3kAGd\">\n<div class=\"c-Mgr _2Mq66 _2Mq66 _7gPc2\">\n<div class=\"_1Lhwj image-container _2mwxs\" tabindex=\"0\" role=\"button\" data-hook=\"imageViewer\">\n<div class=\"xdJBZ\" role=\"img\"><img decoding=\"async\" class=\"_1Fjtc _2lDdg\" src=\"https:\/\/static.wixstatic.com\/media\/d2d989_d2aee404600f4dc4aae9de0a60ce9ed6~mv2.png\/v1\/fill\/w_740,h_206,al_c,q_90,usm_0.66_1.00_0.01\/d2d989_d2aee404600f4dc4aae9de0a60ce9ed6~mv2.webp\" data-pin-url=\"https:\/\/www.fraxtor.com\/blog-1\" data-pin-media=\"https:\/\/static.wixstatic.com\/media\/d2d989_d2aee404600f4dc4aae9de0a60ce9ed6~mv2.png\/v1\/fit\/w_1000%2Ch_424%2Cal_c%2Cq_80\/file.png\"><\/div>\n<div class=\"\">&nbsp;<\/div>\n<div class=\"\">&nbsp;<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p id=\"viewer-2crjn\" class=\"XzvDs _208Ie ljrnk blog-post-text-font blog-post-text-color _2QAo- _25MYV _1Fao9 ljrnk public-DraftStyleDefault-block-depth0 public-DraftStyleDefault-text-ltr\"><span class=\"vkIF2 public-DraftStyleDefault-ltr\"> <em>Tables by Straits Time, Data by SRX<\/em><\/span><\/p>\n<p id=\"viewer-6g7qq\" class=\"XzvDs _208Ie ljrnk blog-post-text-font blog-post-text-color _2QAo- _25MYV _1Fao9 ljrnk public-DraftStyleDefault-block-depth0 public-DraftStyleDefault-text-ltr\"><span class=\"vkIF2 public-DraftStyleDefault-ltr\">According to Ms Christine Sun, head of research and consultancy at Orange Tee &amp; Tie\u2019s, the rental volume decrease could be due to a few reasons. Travel restrictions enforced by many countries, including Singapore, have significantly affected and decreased the number of foreign expats who can enter Singapore for work. This is especially so for workers from neighbouring countries, like Malaysia, who remained in their home countries due to the coronavirus outbreak. As a result, the rental volume dropped. <\/span><\/p>\n<p id=\"viewer-2g14c\" class=\"XzvDs _208Ie ljrnk blog-post-text-font blog-post-text-color _2QAo- _25MYV _1Fao9 ljrnk public-DraftStyleDefault-block-depth0 public-DraftStyleDefault-text-ltr\"><span class=\"vkIF2 public-DraftStyleDefault-ltr\">In contrast to the plummeting sales in the midst of the circuit breaker, private homes rental was improving, rising 1.1 per cent in the first quarter of 2020. This was a pick up from the 1 per cent decrease in the previous quarter. By locations, rentals of non-landed homes in the outside central region (OCR) performed the best at an increase of 1.9 per cent, followed by core central region (CCR) increasing by 1.4 per cent and rest of central region (RCR) increasing by 0.6 per cent.<\/span><\/p>\n<h4 id=\"viewer-9ojeh\" class=\"XzvDs _208Ie ljrnk blog-post-text-font blog-post-text-color _2QAo- _25MYV _1Fao9 ljrnk public-DraftStyleDefault-block-depth0 public-DraftStyleDefault-text-ltr\"><span class=\"vkIF2 public-DraftStyleDefault-ltr\"><strong>Covid-19 and the future impact on Singapore\u2019s real estate rental market<\/strong> <\/span><\/h4>\n<p id=\"viewer-4d1j7\" class=\"XzvDs _208Ie ljrnk blog-post-text-font blog-post-text-color _2QAo- _25MYV _1Fao9 ljrnk public-DraftStyleDefault-block-depth0 public-DraftStyleDefault-text-ltr\"><span class=\"vkIF2 public-DraftStyleDefault-ltr\">Looking ahead, observers believe that the rental market will continue to face challenges as companies adopt more conservative hiring policies and prospective tenants are restricted from visiting and inspecting properties for lease during the circuit breaker period.<\/span><\/p>\n<p id=\"viewer-4geh4\" class=\"XzvDs _208Ie ljrnk blog-post-text-font blog-post-text-color _2QAo- _25MYV _1Fao9 ljrnk public-DraftStyleDefault-block-depth0 public-DraftStyleDefault-text-ltr\"><span class=\"vkIF2 public-DraftStyleDefault-ltr\">It is highly likely that the pandemic will have an enduring impact on the home rental market, even as the economy stirs into activity. The employment market is expected to shrink, causing some foreigners to lose their jobs and resulting in weaker leasing demand. This could ultimately lead to a 2 to 4 per cent year-on-year decline in the private residential and HDB rental index for the rest of 2020. Prior to the outbreak, housing rentals was expected to increase 1.5 to 3 per cent this year due to the tight labour market and lower supply of completed private homes.<\/span><\/p>\n<h4 id=\"viewer-4pg2f\" class=\"XzvDs _208Ie ljrnk blog-post-text-font blog-post-text-color _2QAo- _25MYV _1Fao9 ljrnk public-DraftStyleDefault-block-depth0 public-DraftStyleDefault-text-ltr\"><span class=\"vkIF2 public-DraftStyleDefault-ltr\"><strong>Conclusion<\/strong><\/span><\/h4>\n<p id=\"viewer-dla6c\" class=\"XzvDs _208Ie ljrnk blog-post-text-font blog-post-text-color _2QAo- _25MYV _1Fao9 ljrnk public-DraftStyleDefault-block-depth0 public-DraftStyleDefault-text-ltr\"><span class=\"vkIF2 public-DraftStyleDefault-ltr\">With Singapore\u2019s rental market heavily relying on foreign professionals, the Covid-19 pandemic has dealt a blow to the home rental market. In April, implementation of the circuit breaker restrictions had resulted in a 36.5 per cent and a 0.9 per cent drop in private home rental volume and prices respectively. Despite repeated fiscal boosts to the economy and monetary payouts to Singapore citizens, the economy is widely expected to suffer as the country, and the world, engage in a prolonged battle with a highly contagious virus. This, in turn, is expected to have a depressive effect on the private home rental market in Singapore.<\/span><\/p>\n<div class=\"yF0IC blog-post-homepage-description-style-font blog-post-homepage-description-color\" data-hook=\"post-description\">\n<article class=\"blog-post-description-font\">\n<div class=\"post-content__body\">\n<div class=\"lV_uZ _1LHlu _1ltva\" data-rce-version=\"8.7.1\">\n<div class=\"kcuBq _1PkHV blog-post-homepage-description-style-font _3f8WX uatYj\" dir=\"ltr\">\n<div class=\"kaqlz _1FQ9t blog-post-homepage-description-style-font zJfAe\">\n<p class=\"XzvDs _208Ie ljrnk blog-post-text-font blog-post-text-color _2QAo- _25MYV _1Fao9 ljrnk public-DraftStyleDefault-block-depth0 public-DraftStyleDefault-text-ltr\"><em><a href=\"https:\/\/www.fraxtor.com\/\">Fraxtor<\/a>&nbsp;is an innovative Real Estate Co-investment Platform. With a small amount of capital, you can invest in any type of property worldwide, with your friends, family and fellow investors.<\/em><\/p>\n<p class=\"p1\" style=\"text-align: center;\"><b><i>This article does not constitute legal advice.<\/i><\/b><\/p>\n<p class=\"p2\" style=\"text-align: center;\"><i>The opinions expressed in the column above represent the author\u2019s own.<\/i><\/p>\n<p class=\"p3\" style=\"text-align: center;\"><span class=\"s1\"><a target=\"\" data-open=\"register\" aria-controls=\"register\" rel=\"noopener\"><b>Start managing your legal needs with Zegal today<\/b><\/a><\/span><\/p>\n<h5 style=\"text-align: center;\"><a href=\"https:\/\/zegal.com\/zegal-partners\/\">BECOME A ZEGAL REFERRAL PARTNER<\/a><\/h5>\n<p><a href=\"https:\/\/zegal.com\/blog\/post\/covid-19-impact-singapore-home-rental-market\/\">FURTHER READING: How Has Covid-19 Affected Singapore\u2019s Property Market?<\/a><\/p>\n<p><a href=\"https:\/\/zegal.com\/blog\/post\/asia-apps-work-remotely\/\">READ MORE: 6 Apps Helping You Work Remotely<\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>COVID-19 will no doubt leave a trail of destruction on the real estate landscape in Singapore. Activities in the real estate market have been curtailed by stricter border control, tighter safe distancing measures and particularly the implementation of the \u2018circuit breaker\u2019. The home rental market is unlikely to go unscathed as it is a derived [&hellip;]<\/p>\n","protected":false},"author":119,"featured_media":41142,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_editorskit_title_hidden":false,"_editorskit_reading_time":3,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","inline_featured_image":false,"footnotes":""},"categories":[14278,133],"tags":[10757,13483,47],"usecases":[],"businesstypes":[],"country":[],"class_list":["post-41141","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-management","category-startup","tag-covid-19","tag-real-estate","tag-singapore"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.8 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>How has Covid-19 impacted Singapore\u2019s real estate market? 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