Coronavirus and its impact on Singapore's Property Industry

The novel Coronavirus, or COVID-19, has become a devastating global crisis. Emerging in late December in Wuhan, it has infected over 81,000 people, with a death toll of almost 2,800. Singapore currently has the fifth-highest number of confirmed cases – at 93, as of February 27 – outside of mainland China.

Coronavirus spreads through human-to-human contact, as well as contact with contaminated objects, including lift buttons and door handles. According to some reports, this could lead to potential homebuyers avoiding property viewings out of fear of infection, as well as create reluctance among property sellers to showcase their homes. This imposes a significant barrier for property agents.

Here are some tips on how to combat this situation:

Incorporate Risk Management Plan

Many condominiums and luxury apartments have implemented thorough medical screenings to prevent viruses from entering their neighbourhood. By having your own risk management plan handy, you can ensure that everyone involved in the process is feeling safe, no matter where the viewings location is.

Protective measures such as providing face masks, hand sanitiser and checking all visitor’s temperatures will help to reassure both viewers and sellers – you can rest assured that no sick tenants or prospective buyers will be walking around the property, and they in turn won’t be nervous about catching anything.

Some agents have pointed out that this is especially useful for weekend viewings when the crowds are larger and human-to-human contact is much higher (for example, on weekends people tend to invite their relatives in to use the pool and facilities).

Consider Virtual Tours

Virtual Tours is such a revolutionary tool in helping estate agents to sell properties and is an extremely useful advantage when it comes to coronavirus.

Firstly, by having this excellent feature, your buyers can inspect the property from the comfort of their own home, wherever that might be – giving you limitless boundaries between Singapore and China, or any other country for that matter. Secondly, it benefits you by saving you money, time, and hassle from attending multiple viewings.

Lastly, it eliminates unintentional buyers – studies have shown that 80% of first viewings don’t lead to a second. Hence, by having your first viewings online, you can focus your resources on those who request for second viewings – which usually are serious, legitimate buyers.

Integrate 360° virtual tours with Push. Our virtual tours feature allows for a truly immersive and engaging experience. Take a look for yourself here.

Leverage Technology Platforms

Mainland China Investors hold the largest proportion of foreign property buyers in Singapore. Despite the devastating impact of coronavirus in China, the current epidemic has brought a silver lining to a few players in the technological industry.

Millions of people are being forced to work from home, which as a result, remote work apps are experiencing exponential growth (such as WeChat Work and DingTalk). As such, between late January and February this year, WeChat became the second-most downloaded free iOS app in China, experiencing significant year-over-year growth (572%) in downloads in just under two months.

In order to reach this particular market, it is essential to determine what the best online platform is to use. For instance, Google and Facebook are banned in China, therefore simply setting up a property website is not ideal. Furthermore, those within this market tend to rarely check their emails, so sending weekly updates will just result in wasted resources as they will most likely end up in their junk folder.

Push allows you to engage directly with your clientele through your own website with its WeChat integration feature.

Property Market Impact

The most immediate impact is likely to be slower sales volume and decreased number of viewings. Pure investors may switch to a wait-and-see approach, as they are still waiting to see the clearer picture and scale of the virus outbreak.

A recent Straits Times article forecasted drops in resale volume in Q1 2020 by as much as 25 to 35% due to investors’ reluctance due to declining market confidence.

According to Colliers International Group Singapore, the increase in luxury home sales could be attributed to the heightened interest received from Mainland Chinese Investors whom are seeking safe-haven assets in Singapore. In fact, OrangeTee & Tie conducted research which found that in the last quarter of 2019, sales for Singapore luxury homes (worth at least S$10 million) hit an 11-year high.

However, the World Bank expects China’s economic growth to decrease by 5.9% this year and unfortunately Singapore’s economic situation isn’t looking too bright either. Singapore’s Deputy Prime Minister & Finance Minister, Heng Swee Keat recently claimed that ‘this outbreak will certainly impact our economy’. As a result, Singapore’s Ministry of Trade & Industry has downgraded the 2020 economic forecast by 1.0% amid the coronavirus outbreak. Therefore, it is safe to say that the real estate market here in Singapore can soon expect similar economic damage.

Introducing our Digital Marketing Service!

Our powerful property marketing & leads management platform is backed by award winning in-house digital marketing specialists, Digital Squad. As multiple winners of the prestigious SEMRUSH Awards for the best SEO campaigns, you can rest assured knowing that your property businesses are handled by the best in the field!

With PUSH, you can engage with your customers directly from your website via Facebook Messenger or WeChat – China’s largest Social Media platform. Our seamless integration will allow you to reach out to your target audience and deliver your messages amidst the global virus. The built-in CRM feature allows you to stay organised and track customer emails with marketing automation, helping you to get on top of everything and secure deals, even when your prospective buyers or sellers are cancelling viewings.

So, what else are you looking for? Explore the full capabilities of PUSH and find out why we’re Singapore’s most powerful and popular property marketing platform!

Read more – our Chinese digital marketing services