Trump 2.0: How the Housing Market is Reacting to the Prospect of an Old World Order

With Donald Trump’s return as the 47th President of the United States, financial markets have responded strongly to promises of tax cuts and deregulation. However, his stance on tariffs and immigration could also drive inflation and disrupt global trade. According to DBS Group Holdings CEO Piyush Gupta, this administration may bring about heightened inflationary pressures and potential legal and regulatory risks. Early signs, such as cabinet picks with far-reaching foreign policy agendas and a Republican-majority Senate and House, suggest that tariffs on imports could advance, reshaping trade dynamics.

Implications for Singapore and Malaysia

Trump’s presidency could mean slower economic growth for Southeast Asia, with Malaysia and Singapore potentially facing higher inflation and restrained trade. Yet, the China +1 strategy might offer a silver lining. While Singapore’s trade ties with the U.S. expose it to risk, its open economy could also position it as a safe haven for investment amid global uncertainties.

The extent of the impact on the Singapore and Malaysia economies remains uncertain, and so far, the local housing markets appear stable. A possible reduction in U.S. interest rates may encourage prospective homebuyers, and inflationary pressures could make real estate more appealing as a hedge against inflation.

A Steady Demand for Housing

To gauge market sentiment, we analyzed viewership trends on PropertyGuru Group through DataSense by PropertyGuru . Surprisingly, post-election, views on listings held steady in Singapore, fluctuating within the same range (See Figure 1).

Figure 1: Index Based on Number of Views of Condominium and Apartment Listings in Singapore

Non-landed property views in Malaysia exhibited a similar trend (See Figure 2). This steady demand suggests that property seekers in Malaysia and Singapore are unfazed by Trump’s return, likely due to their countries’ resilience during his previous administration.

Figure 2: Index Based on The Number of Views On Apartment, Condominium and Serviced Residence Listings in Malaysia

Ultimately, while Trump’s policies could influence the global economy, the Singapore and Malaysia property markets seem well-equipped to weather potential shifts, positioning themselves as stable, desirable investments in an unpredictable world.

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