Will the prices of private property drop when the economy is in recession and the financial markets are declining? - Seedly
 

Property

Asked by Anonymous

Asked 3w ago

Will the prices of private property drop when the economy is in recession and the financial markets are declining?

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A supply and demand question.

Various factors will affect the supply and demand equilibrium

  1. How many buyers

  2. How many Sellers

  3. More BuyersSellers = Higher Prices, vice versa

  4. Interest and Borrowing Rates. Lower interest rates, higher prices

  5. Regulation and policy changes - Lower liquidity, lower prices

These are the factors in a general sense which affect the market.

Whether or not the recession will hit property markets depends on your assessment on whether the direction of the above factors will lead too.

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Lok Yang Teng
Lok Yang Teng
Level 8. Wizard
Answered 3w ago

Likely since there's a lesser demand for private property. There will be higher rate of unemployment and people will worry about meeting their daily needs rather than changing their home which will cost a lot. https://tradingeconomics.com/singapore/housing-index

The graph above shows a decrease in the index during the '97 Asian Fianancial Crisis and '09 Global Fianancial Crisis 2009.

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