The effect of COVID-19 on the apartment sector is twofold: the immediate impact on sales activity and the long-term recovery. We believe that the main cause of today’s sluggish apartment market can be attributed to the negative sentiment of investors due to low yield. On top of that the coronavirus struck, putting sales activity on ice, and resulting in a greater level of uncertainty, leading buyers to delay purchase decisions and adopt a wait- and-see approach.
Weakening business prospects coupled with the worsening economic environment and its effect on job security could deter people from making buying decisions. We, however, believe that developers with a proven track record of timely project completion will be able to ride out the crisis.