London Daily

Focus on the big picture.
Thursday, Sep 04, 2025

From Australia to Hong Kong: Not one Asia-Pacific housing market spared as coronavirus knocks investor confidence

From Australia to Hong Kong: Not one Asia-Pacific housing market spared as coronavirus knocks investor confidence

Analysts agree that not one property market in the region will be spared from flagging demand caused by the health crisis. Investment into housing markets is likely to be muted further by weakened demand from tenants, that will lead to lower rents

The deep global recession will lead to significantly lower home sales this year across Asia-Pacific as economies grapple with an unprecedented downturn brought on by the Covid-19 pandemic.

While it is difficult to precisely quantify the slump, analysts agree that not one property market in the region will be spared.

“Given the nature of the pandemic and the sudden shock to real estate activity, with projections of a recessionary environment across most regional economies, it is probable that the loss in buyer confidence [caused by] the uncertain economic outlook, job losses and weaker household balance sheets will result in significantly lower housing transaction volumes this year,” said Harry Tan, head of research, Asia-Pacific, at property investment manager Nuveen Real Estate.

Investment into housing markets is likely to be muted further by weaker demand from tenants, that will lead to lower rents.

“The housing market hasn’t been spared when it comes to the drop in confidence,” said Kenneth Kent, general manager at property listing website Squarefoot.com.hk.

The potential severity of the decline can be seen in first-quarter data, and anecdotal evidence from property agents.

In Singapore, the number of homes sold in the first quarter of this year fell 11.7 per cent to 4,309 units from the fourth quarter of 2019.

In Hong Kong, sales of new homes plunged to 2,262 deals in the first quarter of the year, lower by more than half from a year earlier, according to Midland Realty.



In Australia, Sydney-based Ken Jacobs, who manages his own property agency, an affiliate of Christie’s International Real Estate, said a A$20-million (US$12.8 million) offer on a holiday home has been put on hold because the client’s “family had lost US$70 million in the last two weeks.”

In Thailand, Daiwa Capital Markets estimates that the 2020 earnings of seven developers listed on the stock market will decline by 27 per cent this year.

“Housing prices in emerging Southeast Asian markets could face a more challenging time in the short term as investors’ confidence drops due to extensive travel bans, lockdowns and the way Covid-19 situation is handled,” said Christine Li, Cushman and Wakefield’s head of research for Singapore and Southeast Asia.

Demand from Chinese investors has in recent years boosted property markets in the region including Singapore, Australia, Thailand, Malaysia, and Vietnam, but the pandemic will probably keep them from venturing overseas to park their money.

“Several countries in the Asia-Pacific are still in extraordinary states of paralysis,” said Georg Chmiel, the chief executive at Juwai IQI, which operates a property portal.

The subdued demand for homes is likely to last between six months and a year, according to Sing Tien Foo, professor and director at the Institute of Real Estate and Urban Studies, National University of Singapore.

“It depends on how soon the Covid-19 can be contained. The sooner activity can resume to normalcy, the faster we’ll see the return of market activity,” he said.

Governments across the region have been trying to mitigate the economic damage by rolling out massive stimulus packages.
Hong Kong has announced an estimated HK$287.5 billion (US$37.1 billion) stimulus plan, which is about a 10th of the size of the city’s economy.

Japan, meanwhile, has unveiled a ¥108.2 trillion (US$1 trillion) plan to kick-start its economy, while Singapore’s stimulus package is worth over S$50 billion (US$35.1 billion).

These measures may be enough to limit the damage to the region’s property sector, according to Simon Smith, senior director, research and consultancy, Savills.

“Although there may be a price adjustment, a deep slump is unlikely,” said Smith. “[We’re] expecting recovery to begin in late 2020.”



Newsletter

Related Articles

0:00
0:00
Close
Putin Celebrates ‘Unprecedentedly High’ Ties with China as Gazprom Seals Power of Siberia-2 Deal
China Unveils New Weapons in Grand Military Parade as Xi Hosts Putin and Kim
Queen Camilla’s Teenage Courage: Fended Off Attempted Assault on London Train, New Biography Reveals
Scottish Brothers Set Record in Historic Pacific Row
Rapper Cardi B Cleared of Liability in Los Angeles Civil Assault Trial
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
Court of Appeal Allows Asylum Seekers to Remain at Essex Hotel Amid Local Tax Boycott Threats
Germany in Turmoil: Ukrainian Teenage Girl Pushed to Death by Illegal Iraqi Migrant
United Krack down on human rights: Graham Linehan Arrested at Heathrow Over Three X Posts, Hospitalised, Released on Bail with Posting Ban
Asian and Middle Eastern Investors Avoid US Markets
Ray Dalio Warns of US Shift to Autocracy
Eurozone Inflation Rises to 2.1% in August
Russia and China Sign New Gas Pipeline Deal
China's Robotics Industry Fuels Export Surge
Suntory Chairman Resigns After Police Probe
Gold Price Hits New All-Time Record
Von der Leyen's Plane Hit by Suspected Russian GPS Interference in an Incident Believed to Be Caused by Russia or by Pro-Peace or by Anti-Corruption European Activists
UK Fintechs Explore Buying US Banks
Greece Suspends 5% of Schools as Birth Rate Drops
Apollo to Launch $5 Billion Sports Investment Vehicle
Bolsonaro Trial Nears Close Amid US-Brazil Tension
European Banks Push for Lower Cross-Border Barriers
Poland's Offshore Wind Sector Attracts Investors
Nvidia Reveals: Two Mystery Customers Account for About 40% of Revenue
Woody Allen: "I Would Be Happy to Direct Trump Again in a Film"
Pickles are the latest craze among Generation Z in the United States.
Deadline Day Delivers Record £125m Isak Move and Donnarumma to City
Nestlé Removes CEO Laurent Freixe Following Undisclosed Relationship with Subordinate
Giuliani Seriously Injured in Accident – Trump to Award Him the Presidential Medal of Freedom
EU is getting aggressive: Four AfD Candidates Die Unexpectedly Ahead of North Rhine-Westphalia Local Elections
Lula and Putin Hold Strategic BRICS Discussions Ahead of Trump–Putin Summit
WhatsApp is rolling out a feature that looks a lot like Telegram.
Investigations Reveal Rise in ‘Sex-for-Rent’ Listings Across Canada Exploiting Vulnerable Tenants
Chinese and Indian Leaders Pursue Amity Amid Global Shifts
European Union Plans for Ukraine Deployment
ECB Warns Against Inflation Complacency
Concerns Over North Cyprus Casino Development
Shipping Companies Look Beyond Chinese Finance
Rural Exodus Fueling European Wildfires
China Hosts Major Security Meeting
Chinese Police Successfully Recover Family's Savings from Livestream Purchases
Germany Marks a Decade Since Migrant Wave with Divisions, Success Stories, and Political Shifts
Liverpool Defeat Arsenal 1–0 with Szoboszlai Free-Kick to Stay Top of Premier League
Prince Harry and King Charles to Meet in First Reunion After 20 Months
Chinese Stock Market Rally Fueled by Domestic Investors
×