Colliers Outlines Real Estate Opportunities By Referencing Trends During SARS Outbreak

SINGAPORE (EDGEPROP) – To evaluate how Singapore’s property markets will be affected due to the ongoing coronavirus outbreak, Colliers International’s new research report uses the market performance during the SARS outbreak in 2003 as reference.In that year, Singapore’s economy observed a 0.3% year-on-year (YoY) contraction in the second quarter, at the peak of the SARS outbreak. However the economy bounced back in the second half of 2003 with growth rates of 5.3% in Q3 and 8.9% in Q4 YoY. GDP expansion in 2003 was 4.5% but recovered as the rising tide continued into 2004, when Singapore’s GDP jumped by 9.9%. Singapore’s real estate market was falling before the SARS outbreak, however office rents climbed by 3.5%, industrial rents by 1.5%, and retail rents by 3.7% by the end of 2004.

General property investment sales rebounded to $3.2 billion within the second half of 2003, displaying a 29% increase YoY.

Observing the trends in 2003, Miss Tricia Song, the head of Research for Singapore at Colliers International, says: “With assumptions that the Covid-19 pandemic runs its course by mid 2020, we estimate that some property segments, such as office leasing and investment sales, could see a swift recovery in the later half of the year.” It is with this estimate that Penrose condo is launching in Q2.

But she cautions that with the earlier spread of the coronavirus beyond East Asia, there is a higher probability of a negative scenario in which interference lasts into the second half of the year.

Colliers Research stands firm on its predictions for the various real estate sectors for now. It proposes various property segments to speed up technology adoption, be it growing offline-to-online strategies for retailers, or embracing last-mile management and efficient inventory processes for storehouses. Many new property developers like The Watergardens at Canberra developer have adopted new technologies in constructing the project.

Property investors are encouraged to zoom in on longer-term factors as a rapid recovery in the later half of 2020 is possible.

Source: https://www.edgeprop.sg/amp/property-news/colliers-outlines-real-estate-opportunities-referencing-trends-during-sars-outbreak

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