Understanding Real Estate Markets & Cycle amidst COVID 19

 

With the current situation of the country and abroad, the global markets have been affected with the COVID 19 pandemic effects to the World Economy. There are current job losses, missed opportunities and money being lost brought about by such health crisis. All industries are dependent on Real Estate Market and are heavily connected with the national economy. In our recent post last February on the Philippine economic outlook for 2020, The Philippines had slowed down and has dipped to -7.3 % based from reports from Asian Development Bank. Contractions have been seen and felt all throughout the closure of the archipelago since March 16, 2020 to June 30, 2020 (Enhanced Community Quarantine) and the post lifting of ECQ to Modified General Community Quarantine in July 2020. A lot of businesses were affected with closures particularly the Micro, Small and Medium Enterprises (MSME) sector, hotel / tourism sector, airline and travel sector. Other sectors have were also affected with this great pandemic which contributed to the negative dip of the world economy in general. These industries are co-existing and reliant with each other and the real estate sector at the same time. In a recent reports from PSA released last month, says "The Philippines records a GDP growth rate of -11.5 percent in the third quarter of 2020".

The Philippine Economy and the "New Normal"

I have not been writing for the past few months and have been busy from other things that could detoxify and  destress myself  from this pandemic brought about by COVID-19 that has been trending with almost millions all over the globe were infected with this novel (new) virus. It not only affected production from manufacturing, agriculture, healthcare, and services but including private and public sector. 

COVID 19: Effects to the Philippines and The World Economy

Photo by Anna Shvets from Pexels

The world is in total grip towards pandemonium of Coronavirus Infectious Disease 2019 or COVID 19 (formerly Novel Coronavirus 2019). It wreak havoc in mainland China where the source of this infection believe came from in the market of the City of Wuhan, Hubei province, People's Republic of China. Although World Health Organization (WHO) officials mentioned at there is only a 2% chance of the probability for a patient afflicted with such disease die and 98% recovery rate. It still remains a threat to our borders and our national security, weakening the citizenry and stretching the nation's healthcare resources to the maximum. Our country, the Philippines is vulnerable to such pandemic effect of this new disease hitting our shores as we are very close proximity to mainland China with two related deaths of COVID-19 of whom the two casualties were Chinese citizens were reported as this writing.