Uncertainty over the recovery of the economy after the Covid-19 pandemic continues to weigh on the property market, leading to questions over the short- to medium-term prospects.
“The property market is not going to crash because land prices are not crashing. There is no property bubble for now. A bubble only happens when land prices crash. He believes that one of the signs of a property market crash is when land prices start to drop tremendously. Shan added that he believes land prices in certain areas will fall by 2% to 6% but demand will remain robust.
Thus, there is less demand for development land and, logically, prices would drop, Kong said, adding that property development is a significant contributor to the economy as it involves a long chain of supply and services.