The Impact of COVID-19 Pandemic on Singapore's Resilience in Real Estate Market

Research Article
Open access

The Impact of COVID-19 Pandemic on Singapore's Resilience in Real Estate Market

Guanliang Chen 1* , Xinqi Liu 2 , Yuxuan Yang 3
  • 1 Singapore Management University    
  • 2 Yantai University    
  • 3 Nankai University    
  • *corresponding author glchen.2018@mm.smu.edu.sg
Published on 13 September 2023 | https://doi.org/10.54254/2754-1169/17/20231113
AEMPS Vol.17
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-915371-77-5
ISBN (Online): 978-1-915371-78-2

Abstract

Contemporarily, most of the research into COVID-19-induced mania in the real estate markets leaves public housing in the cold. Singapore with its robust public housing system provides the world with a perspective on another merit of such a system, particularly when a country takes on exact challenges. Deployed the method of qualitative analysis, this pa-per extracts data to dissect Singapore's real estate market consisting of public housing, pri-vate housing, and commercial properties. We analyze common causes behind increased home prices in Singapore (e.g., a new stamp duty regime and the pandemic-induced fi-nancial relief measures) and conclude that the whole of the housing in Singapore will be resilient based on reverting supply and its fundamentals. Besides, the disparate systems in public housing and private housing have created space to shield their residents against shocks. Although it is hardly stopped to channel demand from private housing to public housing, private housing can cushion blows for the public. Additionally, by analyzing pieces of news and financial figures, the paper verifies the saying that "this is a world that is ever-changing." Even if the brick-and-mortar barely falters, the purpose of doing busi-ness is vicissitude. Therefore, the paper expects a transformation in commercial real estate in Singapore.

Keywords:

Singapore, COVID-19, real estate, public housing, private housing

Chen,G.;Liu,X.;Yang,Y. (2023). The Impact of COVID-19 Pandemic on Singapore's Resilience in Real Estate Market. Advances in Economics, Management and Political Sciences,17,292-303.
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References

[1]. World Bank Group. (2020, June 8). The Global Economic Outlook during the COVID-19 pandemic: A changed world. World Bank. Retrieved August 19, 2022, from https://www.worldbank.org/en/news/feature/2020/06/08/the-global-economic-outlook-during-the-covid-19-pandemic-a-changed-world

[2]. Peeris, J.: Bookmark Bookmark Share WhatsApp Telegram Face. Virtual tours and opportunities: The Singapore property market during COVID-19. CNA. Retrieved August 18, 2022, from https://www.channelnewsasia.com/business/virtual-tours-opportunities-singapore-property-market-covid19-724186

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[4]. Romei, V., Giles, C.: Pandemic fuels broadest global house price boom in two decades. Subscribe to read | Financial Times (2021, August 1). Retrieved August 11, 2022, from https://www.ft.com/content/491a245d-4af7-4cad-b860-6ba51b86b45f

[5]. See, S.: More capital flows into Asean amid pandemic and US-China tensions. Businesstimes.com.sg (2020, Septem-ber 16). Retrieved August 11, 2022, from https://www.businesstimes.com.sg/government-economy/more-capital-flows-into-asean-amid-pandemic-and-us-china-tensions

[6]. Eugenio, C., Jihad, D., Giovanni, D. A.: Housing Finance and Real-Estate Booms: A Cross-Country Perspective. Journal of Housing Economics, 27(38), pp. 1-13 (2017).

[7]. Deng, X., Seow, E. O., Qian, M.: Real Estate Risk, Corporate Investment and Financing Choice. The Journal of Real Estate Finance and Economics, 57(1), pp. 87-113 (2018).

[8]. Owusu-Manu, D., Edwards D. J., Badu, E. K. A., Donkor-Hyiaman, E. D. A.: Real estate infrastructure financing in Ghana:Sources and constraints. Habitat International, 40(50), pp. 35-41 (2015).

[9]. Zhang, Y.: Southeast Asia's Economy Under the Influence of the COVID-19. Southeast Asian Studies, 2021(01), pp. 64-84 (2021).

[10]. Liu, Y.: Current Situation, Problems and Countermeasures of the Real Estate Market in the Post Epidemic Period. Chinese Market, 2021(08), pp. 13-16 (2021).

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[17]. Ministry of National Development. (2021, December 15). Measures to Cool the Property Market. Ministry of National Development. Retrieved August 22, 2022, from https://www.mnd.gov.sg/newsroom/press-releases/view/measures-to-cool-the-property-market

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[20]. Urban Redevelopment Authority. (2022, April 22). Release of 1st quarter 2022 Real Estate Statistics. URA. Retrieved September 2, 2022, from https://www.ura.gov.sg/Corporate/Media-Room/Media-Releases/pr22-18

[21]. Liew, I.: Private home sales slowed in first half of 2022 as cooling measures tamped down demand. The Straits Times (2022, September 14). Retrieved September 14, 2022, from https://www.straitstimes.com/singapore/housing/private-home-sales-slowed-in-first-half-of-2022-as-cooling-measures-tamped-down-demand

[22]. Urban Redevelopment Authority. (2019, April 26). Release of 1st Quarter 2019 real estate statistics. URA. Retrieved September 4, 2022, from https://www.ura.gov.sg/Corporate/Media-Room/Media-Releases/pr19-19#:~:text=As%20at%20the%20end%20of,Annex%20E%2D24).

[23]. Urban Redevelopment Authority. (2022, July 22). Release of 2nd quarter 2022 Real Estate Statistics. URA. Retrieved September 4, 2022, from https://www.ura.gov.sg/Corporate/Media-Room/Media-Releases/pr22-30#:~:text=A%20total%20of%202%2C682%20units,remaining%202%20quarters%20of%202022.

[24]. Singapore core inflation rateseptember 2022 data - 1990-2021 historical. Trading Economics. Retrieved September 4, 2022, from https://tradingeconomics.com/singapore/core-inflation-rate

[25]. Ruehl, M.: Singapore office rents set to hit pre-pandemic levels. Financial Times (2022, August 22). Retrieved Sep-tember 1, 2022, from http://www.chineseft.com/story/001097045/en?archive

[26]. Mapletree Commercial Trust: MCT - stock price: Live quote: Historical Chart. Trading Economics. Retrieved Sep-tember 22, 2022, from https://tradingeconomics.com/mct:sp

[27]. Frasers Centrepoint Trust (J69U.SI) company profile & facts. Yahoo! Finance. Retrieved September 22, 2022, from https://finance.yahoo.com/quote/J69U.SI/profile/

[28]. Department of Statistic. (2022, August 30). Household Sector Balance Sheet (End Of Period). Department of Statistic Singapore. Retrieved September 9, 2022, from https://tablebuilder.singstat.gov.sg/table/TS/M700981

[29]. Lim, C., Tan, F., Goola Warden and Lim Hui Jie, Jie, L. H., Warden, G., Pillai, S., Chan, J., Cher, B., & Tay, V.: Kep-pel DC REIT Latest News (SGX:AJBU): SG investors.io. SG investors.io - Where SG Investors Share (2022, Oc-tober 21). Retrieved October 21, 2022, from https://sginvestors.io/sgx/reit/ajbu-keppel-dc-reit/news-article.

Cite this article

Chen,G.;Liu,X.;Yang,Y. (2023). The Impact of COVID-19 Pandemic on Singapore's Resilience in Real Estate Market. Advances in Economics, Management and Political Sciences,17,292-303.

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About volume

Volume title: Proceedings of the 2nd International Conference on Business and Policy Studies

ISBN：978-1-915371-77-5(Print) / 978-1-915371-78-2(Online)
Editor：Canh Thien Dang, Javier Cifuentes-Faura
Conference website: https://2023.confbps.org/
Conference date: 26 February 2023
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.17
ISSN：2754-1169(Print) / 2754-1177(Online)

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References

[1]. World Bank Group. (2020, June 8). The Global Economic Outlook during the COVID-19 pandemic: A changed world. World Bank. Retrieved August 19, 2022, from https://www.worldbank.org/en/news/feature/2020/06/08/the-global-economic-outlook-during-the-covid-19-pandemic-a-changed-world

[2]. Peeris, J.: Bookmark Bookmark Share WhatsApp Telegram Face. Virtual tours and opportunities: The Singapore property market during COVID-19. CNA. Retrieved August 18, 2022, from https://www.channelnewsasia.com/business/virtual-tours-opportunities-singapore-property-market-covid19-724186

[3]. World Bank Group. (2022, February 15). WDR 2022 Chapter 1. introduction. World Bank. Retrieved Spetember 7, 2022, from https://www.worldbank.org/en/publication/wdr2022/brief/chapter-1-introduction-the-economic-impacts-of-the-covid-19-cri-sis#:~:text=The%20COVID%2D19%20pandemic%20sent,inequality%20within%20and%20across%20countries.

[4]. Romei, V., Giles, C.: Pandemic fuels broadest global house price boom in two decades. Subscribe to read | Financial Times (2021, August 1). Retrieved August 11, 2022, from https://www.ft.com/content/491a245d-4af7-4cad-b860-6ba51b86b45f

[5]. See, S.: More capital flows into Asean amid pandemic and US-China tensions. Businesstimes.com.sg (2020, Septem-ber 16). Retrieved August 11, 2022, from https://www.businesstimes.com.sg/government-economy/more-capital-flows-into-asean-amid-pandemic-and-us-china-tensions

[6]. Eugenio, C., Jihad, D., Giovanni, D. A.: Housing Finance and Real-Estate Booms: A Cross-Country Perspective. Journal of Housing Economics, 27(38), pp. 1-13 (2017).

[7]. Deng, X., Seow, E. O., Qian, M.: Real Estate Risk, Corporate Investment and Financing Choice. The Journal of Real Estate Finance and Economics, 57(1), pp. 87-113 (2018).

[8]. Owusu-Manu, D., Edwards D. J., Badu, E. K. A., Donkor-Hyiaman, E. D. A.: Real estate infrastructure financing in Ghana:Sources and constraints. Habitat International, 40(50), pp. 35-41 (2015).

[9]. Zhang, Y.: Southeast Asia's Economy Under the Influence of the COVID-19. Southeast Asian Studies, 2021(01), pp. 64-84 (2021).

[10]. Liu, Y.: Current Situation, Problems and Countermeasures of the Real Estate Market in the Post Epidemic Period. Chinese Market, 2021(08), pp. 13-16 (2021).

[11]. Housing and Development Board. Resale statistics. HDB. Retrieved August 11, 2022, from https://www.hdb.gov.sg/residential/selling-a-flat/overview/resale-statistics

[12]. Housing and Development Board. (2022, April 22). Release of 1st quarter 2022 Public Housing Data. HDB. Retrieved August 12, 2022, from https://www.hdb.gov.sg/about-us/news-and-publications/press-releases/Release-of-1st-Quarter-2022-Public-Housing-Data

[13]. Channel NewsAsia. (2021). Two-thirds of Bto projects completed during COVID-19 delayed no more than 6 months: Hdb. YouTube. Retrieved August 19, 2022, from https://www.youtube.com/watch?v=OQbbkpPkNZc.

[14]. More marriages and divorces in Singapore in 2021 with easing of COVID-19 measures. Channel NewsAsia. (2022, July 6). Retrieved September 1, 2022, from https://www.channelnewsasia.com/singapore/more-marriages-divorces-singapore-2021-covid-19-measures-eased-2791786

[15]. Housing and Development Board. (n.d.). Committee of Supply 2022. HDB. Retrieved August 20, 2022, from https://www.hdb.gov.sg/cs/infoweb/homepage

[16]. Enhanced CPF Housing Grant (families). HDB. Retrieved September 1, 2022, from https://www.hdb.gov.sg/residential/buying-a-flat/flat-and-grant-eligibility/couples-and-families/enhanced-cpf-housing-grant-families

[17]. Ministry of National Development. (2021, December 15). Measures to Cool the Property Market. Ministry of National Development. Retrieved August 22, 2022, from https://www.mnd.gov.sg/newsroom/press-releases/view/measures-to-cool-the-property-market

[18]. Housing and Developing Board. (2020, January 23). Release of 4th quarter 2019 Public Housing Data. HDB. Retrieved September 3, 2022, from https://www.hdb.gov.sg/cs/infoweb/about-us/news-and-publications/press-releases/23012020-4q2019-public-housing-data

[19]. Urban Redevelopment Authority. (2020, January 23). Release of 4th quarter 2019 real estate statistics. URA. Re-trieved September 1, 2022, from https://www.ura.gov.sg/Corporate/Media-Room/Media-Releases/pr20-06

[20]. Urban Redevelopment Authority. (2022, April 22). Release of 1st quarter 2022 Real Estate Statistics. URA. Retrieved September 2, 2022, from https://www.ura.gov.sg/Corporate/Media-Room/Media-Releases/pr22-18

[21]. Liew, I.: Private home sales slowed in first half of 2022 as cooling measures tamped down demand. The Straits Times (2022, September 14). Retrieved September 14, 2022, from https://www.straitstimes.com/singapore/housing/private-home-sales-slowed-in-first-half-of-2022-as-cooling-measures-tamped-down-demand

[22]. Urban Redevelopment Authority. (2019, April 26). Release of 1st Quarter 2019 real estate statistics. URA. Retrieved September 4, 2022, from https://www.ura.gov.sg/Corporate/Media-Room/Media-Releases/pr19-19#:~:text=As%20at%20the%20end%20of,Annex%20E%2D24).

[23]. Urban Redevelopment Authority. (2022, July 22). Release of 2nd quarter 2022 Real Estate Statistics. URA. Retrieved September 4, 2022, from https://www.ura.gov.sg/Corporate/Media-Room/Media-Releases/pr22-30#:~:text=A%20total%20of%202%2C682%20units,remaining%202%20quarters%20of%202022.

[24]. Singapore core inflation rateseptember 2022 data - 1990-2021 historical. Trading Economics. Retrieved September 4, 2022, from https://tradingeconomics.com/singapore/core-inflation-rate

[25]. Ruehl, M.: Singapore office rents set to hit pre-pandemic levels. Financial Times (2022, August 22). Retrieved Sep-tember 1, 2022, from http://www.chineseft.com/story/001097045/en?archive

[26]. Mapletree Commercial Trust: MCT - stock price: Live quote: Historical Chart. Trading Economics. Retrieved Sep-tember 22, 2022, from https://tradingeconomics.com/mct:sp

[27]. Frasers Centrepoint Trust (J69U.SI) company profile & facts. Yahoo! Finance. Retrieved September 22, 2022, from https://finance.yahoo.com/quote/J69U.SI/profile/

[28]. Department of Statistic. (2022, August 30). Household Sector Balance Sheet (End Of Period). Department of Statistic Singapore. Retrieved September 9, 2022, from https://tablebuilder.singstat.gov.sg/table/TS/M700981

[29]. Lim, C., Tan, F., Goola Warden and Lim Hui Jie, Jie, L. H., Warden, G., Pillai, S., Chan, J., Cher, B., & Tay, V.: Kep-pel DC REIT Latest News (SGX:AJBU): SG investors.io. SG investors.io - Where SG Investors Share (2022, Oc-tober 21). Retrieved October 21, 2022, from https://sginvestors.io/sgx/reit/ajbu-keppel-dc-reit/news-article.

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