Singapore has imposed a ‘circuit-breaker’ during which all non-essential work needs to take place from homes. The government has pledged S$60 billion in support packages to tide over this economic crisis and has revised its 2020 GDP forecast to as low as minus 4%. No one can say at this juncture if we are past the peak of the pandemic, and debates continue to rage over the extent of economic, wealth and employment damage. Will the recovery be V-shaped, U or L?
Notwithstanding the unknowns, there is no doubt that the residential market in Singapore would be impacted, like every other market. The real question is around the extent of the impact. Following the Global Financial Crisis or GFC in 2007/08, residential property prices fell 25% in 2008/09. So how would Singapore’s residential market fare this time?