 A Review of COVID-19 Impacts on Global Residential Property Prices and Key Trends: UK, China, Malaysia, Singapore and United StatesSr Dr Tham Kuen-wei,
Chai Woei-Chyi,
Dr Cheng Chin-Tiong,
Dr Alan Chong Kim-Wing and
Pang Khai-Shuen
International Journal of Research and Innovation in Social Science, 2024, vol. 8, issue 12, 2038-2059 Abstract: Purpose – This study seeks to assess the global effects of the COVID-19 pandemic on the real estate market. The results will offer valuable insights into potential impacts on macroeconomic stability, as well as provide an overview of current trends and existing literature in relation to the real estate market. These insights can aid policymakers, investors, and consumers in implementing measures to alleviate economic disruptions, counter adverse effects, and pinpoint fresh opportunities within the global real estate markets. Design/Methodology/Approach – This research article is based on a review of the literature on the impact of COVID-19 on the real estate market in the United States, Europe, and Asia. The literature review includes academic articles and industry reports. The data and information from these sources were analyzed and synthesized to provide a comprehensive overview of the impact of COVID-19 on the real estate market in the three regions. At the same time, trend analyses are conducted on the property prices in Malaysia, Singapore, China, Thailand, the United States and UK before, during and after the COVID-19 pandemic. Trend analysis emerges as a robust methodology for scrutinizing residential property prices owing to its inherent advantages. Its protracted time horizon allows for the examination of price fluctuations over extended periods, elucidating enduring market dynamics including economic cycles. Findings – The study provides a nuanced view of the global impact of the COVID-19 pandemic on the property market. It highlights that different countries have experienced varying effects, with some seeing declines in housing prices while others observe an increase. The research emphasizes the crucial role of macroeconomic stability in the real estate market and underscores the need for effective policies to mitigate economic shocks. Examining cases like China and Korea, the study demonstrates that swift government responses, through macroeconomic surveillance and implementation of stimulating policies, have successfully protected and boosted the real estate market, leading to positive price trends. This underscores the importance of proactive macroeconomic surveillance and prudent policies for safeguarding and promoting the real estate market during global crises. Conversely, instances in Italy and Spain illustrate that recessions can generate economic uncertainty and job losses, resulting in a decrease in property prices. To counteract this, governments and regulators should consider measures like guaranteed wage subsidies, job creation initiatives, and unemployment insurance to stimulate the real estate market and restore public confidence. Regarding market trends and behaviours, the research identifies a growing demand for residential properties with larger spaces in countries such as China, Singapore, the US, Germany, and France. Conversely, the hospitality and commercial property sectors, including offices and hotels, have been consistently negatively impacted by the pandemic across many countries. The study also highlights improvements in safety procedures and building management due to the pandemic. Furthermore, there is a notable shift in preferences towards online business operations and working from home, leading to an increased demand for industrial and logistical properties compared to retail and commercial spaces. Additionally, there is a rising interest in suburban and single-family homes, creating a new market opportunity for developers as more buyers and consumers express a preference for living in suburban areas with larger living spaces. Lastly, residential property prices in Malaysia, Singapore, China, Thailand, the US and UK showed similar trends before, during and after the COVID-19 pandemic where all prices dropped before a rebound after the pandemic ended. Research Limitations/Implications – This study has several limitations that warrant consideration. Firstly, it relies on a review of existing literature, industry reports, and news articles, potentially missing some nuances in the impact of COVID-19 on the real estate market. Secondly, the ongoing nature of the pandemic means that its long-term effects remain uncertain, making it possible that the study’s findings may not accurately predict future trends in the real estate market. Furthermore, the study’s scope is limited to specific countries in three regions (US, Europe, and Asia), and the impact of COVID-19 on the real estate market may differ in other global regions. Lastly, potential biases in data collection and reporting could affect the representativeness of the data used in this study. As a result, it is important to interpret the findings with caution, and further research is needed for a comprehensive understanding of COVID-19’s impact on the real estate market. Practical Implications – The research underscores the critical role of policymakers in addressing unemployment through strategic measures such as guaranteed wage subsidies, job creation policies, and unemployment insurance. These initiatives not only stimulate the real estate market but also reinstate public confidence. Moreover, the study emphasizes the importance of tackling underlying economic issues and deploying tailored policies to foster resilience and sustainable economic growth amid adversity. Additionally, it identifies a growing preference for suburban and single-family homes, presenting a lucrative market opportunity for developers to capitalize on this trend and cater to the increasing demand for larger living spaces in suburban areas. Social Implications – The study underscores the social implications of policymakers prioritizing initiatives to combat unemployment and control housing prices. By implementing measures such as guaranteed wage subsidies, job creation policies, and unemployment insurance, communities can experience not only economic revitalization but also enhanced social cohesion and well-being. The restoration of public confidence in the real estate market can lead to increased stability and prosperity for individuals and families. Additionally, controlling housing prices ensures accessibility and affordability, fostering inclusive communities and reducing socioeconomic disparities. The rising demand for suburban and single-family homes reflects evolving lifestyle preferences, highlighting the importance of urban planning and development strategies that prioritize community needs and aspirations for spacious living environments. Thus, addressing unemployment through targeted policies while also controlling housing prices can have profound social implications, promoting inclusive growth and sustainable urban development. Originality/Value – This study stands out for its extensive examination of COVID-19’s effects on the real estate market in the US, Europe, and Asia. While prior research has concentrated on specific segments or regions, this study offers a comprehensive view of how various sectors and regions worldwide have been impacted. Additionally, the study sheds light on the societal and practical consequences of the pandemic on the real estate market, offering valuable insights for adapting to evolving consumer demands and addressing socio-economic concerns. In summary, this research presents a distinctive perspective on COVID-19’s influence on the real estate market, offering valuable implications for policymakers, real estate professionals, and investors. Date: 2024 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bcp:journl:v:8:y:2024:i:12:p:2038-2059 Access Statistics for this article International Journal of Research and Innovation in Social Science is currently edited by Dr. Nidhi Malhan More articles in International Journal of Research and Innovation in Social Science from International Journal of Research and Innovation in Social Science (IJRISS) |
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