Potential buyers became cautious on the investment front due to weakening business prospects as the worsening economic environment (GDP is forecast to grow by only 3% in 2020) may deter buying decisions. Measures implemented by policymakers to support the economy will take time to flow through. As such, the implications to the apartment market will be most evident over a longer period of time rather than being immediately apparent. While businesses or individuals may be affected by the outbreak, their demand for apartments is likely to be delayed rather than disappear. Investors are advised to adopt a “wait-and-see” approach until the situation improves, which could potentially be in H2 2020. Nonetheless, underlying demand in the middle-low segment should remain solid and, with pent- up demand accumulating, the market could potentially revive.
