Investing in a property during a crisis period
Mar 27, 2020 – To contain the spread of Covid-19, Singapore is prohibiting gatherings of more than 10 persons and maintaining a physical distance of at least 1m with effect from March 27. In line with the restrictions by the Ministry of Health (MOH), the URA outlined tighter measures for visitors to property developers’ sales galleries too.
A famous quote from Warren Buffet “We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”
We had witnessed a 70% sellout on February 2020 of The M by Wing Tai. This development was launched at a post Covid 19 outbreak period. We had analysed the situation and came to this conclusion. Plenty of buyers out there are still spotting for value buys. The M was launched at close to break even pricing by developer. During this Covid 19 period, developers now are very sensitive in pricing their launch.
Let me put this in another example. Do you dare to buy a air ticket now for a year end travel at a greatly discounted price? Or would you rather wait out for a few more months and buy when the Covid situation turns better? Would airline then price the ticket cheaper or more expensive? There is no right or wrong.
There are a few successful people who benefited immensely during the Lehman brother financial crisis period. They invested in real estate during that period and reap the profit when market rebounded. There are also plenty of buyers to choose to wait out and missed the opportunity then. Do not be surprise, some of them are still waiting till today.