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The Coronavirus which started in December 2018 has intensified globally, surpassing figures from SARS with more than 37,000 as of 9th February 2020. China was the highest at 37,226, with Japan follow behind as 96 cases and Singapore 3rd highest at 40 cases.
Singapore raise Outbreak Alert to Orange
Singapore has since raise outbreak alert to orange on 7th February with more new cases detected for local Singaporeans that has not been to China or any known origin.
Definition of “Orange” indicate that the outbreak is deemed to have moderate to high public health impact”. This is the 2nd time Singapore has upgrade the code. The first was during the swine flu (H1N1) in 2009.
With Singapore now in Orange Zone, the emphasis will be on to minimise and reduce the risk of transmission by cutting down unnecessary activities and gatherings. Most organisers has cancel or cut down of events to reduce the risk of transmission.
Some measures in place as follow:
- Carry out temperature screening
- Cut down or cancel large scale events / gathering
- Doing more area cleaning on common area
- Keep a lookout for those who are sick
- Ensure places is well ventilated
- Wash hand regularly
- Declare travel history
- Self-Quarantine if unwell.
Businesses affected by Coronavirus
Those who are in the health, medical and supermarket will see a spike in business as more people head to see doctors and buying health products like gloves, mask and sanitary products. After MOH raise the status to Orange, there are panic buying as many head to supermarket to stock up their daily necessities. NTUC FairPrice has since limit purchase of vegetables, instant noodles and paper products.
On the other hand, there are many businesses affected for this corona virus. Cathay Pacific has since request his 27,000 to take unpaid leave as the outbreak hit demand. Limousine has also see a sharp drop in demand as there’s fewer visitors coming Singapore. Tourism and hospitality related businesses will definitely be hit hard with this crisis such as restaurants, hotels and travel agency.
Stocks in the airline, tourism and hospitality related has seen a sharp drop in their share price and companies with a direct or indirect exposure to China consumer market such as casinos also tumbled.
This outbreak will affect Singapore’s economy and consumer confidence is this current situation persist.
Impact on Singapore Real Estate Market
Some showflat has since closed its door to walk-in and only for appointment basis. Prior to entering showflat, some will be required to take temperate. Developers might also delay launches due to dampen sentiment. Listed property developers will see some relief from the exemption of qualifying certification scheme.
Property transactions are likely to dip as those who can wait will likely wait to see how market goes during the next few months. However, resale are likely to stay healthy as those who need a roof or sell will still proceed with their transaction although they might be more cautious.
Properties that has a strong unique preposition should maintain their property prices well as Singapore property market has been much subdued by the implementation of the cooling measures over the years. Fundamentals of Singapore property itself is still strong andnot so easily liquidated like stock market However if this outbreak is not contain and persist over a long period of time, we likely could see a dip in property prices.