Introduction: Trade War Tensions—A Market in Limbo?
Global trade tensions—especially between the US and China—have sent stock markets fluctuating, shaken investor confidence, and slowed cross-border investments.
In Singapore, many are asking:
“Should I wait before buying property?”
“Will prices fall?”
“What happens if the economy slows down?”
At David & Audrie Properties, we believe that timing the market is less important than having a solid strategy.Let’s examine how current uncertainty affects real estate—and what you should do next.
1. [W] – Wealth Accumulation: Where Is the Safe Money Moving?
During global tension, large funds often exit volatile assets (like stocks) and flow into real assets like gold, government bonds—and yes, property.
In Singapore:
Residential property remains protected by policy (TDSR, LTV caps)
Foreigners still consider SG real estate a safe haven
Supply is limited due to URA land constraints
W.A.T.E.R. Insight:
When market confidence drops, cash-rich buyers turn to tangible assets. This creates long-term stability in the local market—even when others are fearful.
2. [A] – Affordability: Interest Rates and Entry Costs
The trade war is slowing global growth, which often leads to lower interest rates. Singapore banks have already begun adjusting mortgage rates.
What this means:
Your borrowing costs may drop
Monthly repayments become more manageable
It’s cheaper to enter with smart leverage
W.A.T.E.R. Insight:
In times like this, locking in a low interest rate can amplify returns over 10–20 years. When the market is fearful, financing becomes your hidden advantage.
3. [T] – Timeline: Are You Buying for Short or Long Term?
If you’re looking to flip within 12–18 months, uncertainty may seem risky.
But:
Property is not a short-term asset
Rental markets remain steady
Government is unlikely to let values collapse
W.A.T.E.R. Insight:
If your goal is early retirement or a 5–10 year capital growth horizon, these dips in market confidence are often the best entry points.
4. [E] – Exit Strategy: Who Will You Sell To Later?
Even amid global slowdowns, Singapore’s fundamentals remain strong:
Global companies continue to anchor in SG
Work Pass and PR numbers are still rising
Population density + urban renewal = built-in demand
Trade tensions may delay buyers, but they don’t erase future demand. Especially in transformation zones (e.g., One-North, Greater Southern Waterfront), demand will catch up.
W.A.T.E.R. Insight:
Always plan your exit. But remember—fear in the market today = opportunity for you tomorrow.
5. [R] – Rentability: Income Protection During Volatility
Rental markets in Singapore are cushioned by:
A steady expat population
Families renting while “waiting and seeing”
Tenants upgrading to better value homes in uncertain times
Also:
Fewer new launches during downturns = lower competition
Good MRT-location units maintain strong rental yields (~3–4%)
W.A.T.E.R. Insight:
In uncertain times, rental income keeps your asset performing—even if prices fluctuate.
Conclusion: So… Should You Wait or Buy?
If you’re waiting for the “perfect moment” to invest, remember—the best opportunities rarely feel safe.
Trade war or not, Singapore property continues to:
Hold its value
Generate rental income
Build long-term wealth with leverage
David & Audrie’s Final Word:
We told our clients this:
“Uncertainty is when the smart money positions itself quietly.”
If you’re serious about retirement, legacy planning, or building your property portfolio, now may be the time to zoom out, review your numbers, and make your next move.
