The COVID-19 Pandemic

For many years now, there has been a trend towards developing countries becoming more advanced in the realm of 3d city and planning. In particular, Singapore has seen a surge in development activity over the past decade or so, with some spectacular new cities and districts being built from scratch.

The rise in urbanization in these countries has lead to a surge in real estate transactions, as people have sought to invest in properties considered to be good “safe havens” during one of the most tumultuous periods in global history. Evidently, these properties are needed more than ever, given that traditional stock markets have taken a pounding in recent years and many people want to avoid getting caught up in the fallout.

This phenomenon can be directly attributed to the COVID-19 pandemic and the subsequent economic “covid” that it caused. The world's largest real estate companies were completely taken by surprise by the sheer scale and ferocity of the pandemic, and many large scale development projects were either put on hold or even completed in a dramatically altered form.

Real estate development and planning used to be a very cumbersome and labor-intensive process, made significantly more complex by red tape and government regulations. Thanks to modern technology and the advent of online platforms like 3dcity.com, this has changed radically, as planning software makes it easy for anyone to visualize and plan their real estate goals and dreams, regardless of their level of expertise or familiarity with such software.

As mentioned above, one of the major drivers behind the increased interest in real estate development and planning is the global financial crisis of a few years ago. Although prices began to rise before this global financial crisis and were already on the rise even during the peak of the last recession, the economic effects were more profound and far-reaching than most people expected. Large scale real estate development was considered to be a safe haven for investment, and a number of mega-projects were completed around the world, with many more in the planning stages.

Not only has the pandemic lead to a complete rewrite of the real estate chapter of the global economic history books, but it has also exposed the dangers of relying too heavily on any one market sector, be it stocks or real estate. For example, if the stock market takes a nose-dive, it's often followed by a sharp decline in the real estate market, and it's the other way around when the real estate market is doing well. This has lead to an increase in the number of people looking to diversify and lessen the impact that financial uncertainty has on their personal lives.

The global pandemic that was officially declared to have begun in December 2019 has had a profound impact on almost every facet of our lives, including real estate. While many countries around the world took the opportunity to travel less and stay at home more, the effect of COVID-19 was less visible in developed countries like the United States and the United Kingdom, which effectively allowed them to “flatten the curve” and limit the number of deaths that occurred due to the pandemic.

Developing countries that were already struggling with high rates of unemployment saw the number of people seeking work skyrocket, and this demand for labor was directly responsible for driving up both wages and property values. In particular, the property market in Singapore and many other Asian countries exploded, with prices reaching record highs and the number of people seeking to purchase a property soaring.

This demand for properties was driven by a combination of factors. First and foremost, the fear of missing out led to many people rushing to purchase a property before the buying frenzy even began. Second, companies and institutions like MIPIM (the Multipolar International Property Institute) saw the opportunity and jumped on the bandwagon, offering free market research as well as property brokerage and legal services to new and existing property buyers.

With many years of pent-up demand finally being released, property prices began to rise even before the pandemic and the recent economic “covid”. Interest rates on mortgages and lines of credit were drastically reduced, making it easier for people to purchase properties and easier for banks to provide mortgage loans. Given that mortgage payments will be settled for many years to come, the subsequent demand for properties will continue to present itself as long as financial markets remain vibrant and people want to purchase a home as an investment.

The property market in Singapore has been completely altered by the pandemic, with government restrictions preventing anyone from leaving the island and travel being limited to a select few. While this has certainly increased the challenge of selling and renting out properties, it has also provided the opportunity to delve deeper into one's planning and design goals, as well as the ideal family size and layout.

Thanks to the pandemic and its subsequent socioeconomic effects, the online realm has seen a surge in development activity, with new and existing platforms like 3dcity.com emerging to provide real estate professionals with the tools to plan and develop their real estate portfolios in a convenient and streamlined manner. If cybersecurity and the privacy of client information are a concern, the industry standard is omnichannel approaches, such as being able to visit a website, submit an inquiry, and then be referred to a sales representative for a personal phone call, rather than just the other way around as with many traditional real estate brokers.

The increased interest in online platforms like 3dcity.com can be directly attributed to the fact that they provide a level of convenience and efficiency that was not previously available. As noted by real estate data firm PropertyChain, during the pandemic, “online tools like 3dcity have significantly reduced the administrative workload, allowing agents to focus on listing and securing good quality, investor interest.”

Indeed, the real estate industry is now in the middle of a paradigm shift, with technology making it easier for anyone to purchase a property and easier for professionals to serve as agents for multinational companies and institutions. Thanks to new regulations and guidelines that have been put in place following the pandemic, as well as increased digital penetration and Internet usage, the property industry has never been more fertile ground for innovation and real estate development.