Rental & Sales Market Review Q2 2020
Rental Market Review Q2 2020
Residential Rental Rate Range
Avg. Achieved Rent Metrics Q2 2019 and 2020 40,000
Achieved Rent (BDS)
35,000 30,000 25,000 20,000 15,000 10,000 5,000 0
1 Bed
3 Beds
2 Beds
5 Beds
4 Beds
2019
6 Beds
• The overall average rental rate for the period was down 5% the previous year. • It is worth noting however that the average rental rate per room increased over Q1 2020. • There were 39% fewer rental transactions in Q2 2020. This decline is not surprising considering that the island was in lockdown for over 50% of this quarter and we were unable to show properties. • There has been a distinct shift in the market with many prospective tenants now pre-viewing properties via our video tours rather than in person.
2020
RESIDENTIAL RENTALS FOR Q2
Achieved Rent Metrics Q2 2020 Average achieved rental rates decreased in Q2 2020 for 1 - 4 bedroom homes. However there was a marked increase in 5 and 6 bedroom rental rates due to two luxury rentals.
Q2 Rentals by Property Type
YEAR
MIN
2019
$1,200
$20,000
$5,806
-
2020
$1,000
$34,000
$5,409
-39.6%
53%
2020 10%
20%
40%
Apartment
50%
House
60%
70%
9% 80%
90%
100%
Townhouse
Demand for houses appears to be increasing with 44% of rentals in Q2 2020 vs 38% in Q2 2019. % Share of Rental Transactions Q2 2019 VS Q2 2020 60% 50% 40%
53% 47% 44%
1 Bed
2 Beds
3 Beds
4 Beds
2019
5 Beds
6 Beds
2020
• In Q2 2019, 15% of rentals were 1 bedroom and this decreased to just 3% in Q2 2020. We have seen a corresponding increase in available 1 bedroom stock. • 81% of rentals in Q2 2020 were for 2 and 3 bedroom properties, compared with 67% in Q2 2019.
38%
30%
Rental Locations
20% 10%
Y.O.Y TRANSACTION CHANGE
9%
44%
30%
AVERAGE
Q2 Rentals by Bedroom Count 38%
47% 0%
MAX
Residential Rentals by No. of Bedrooms
Q2 Rentals by Property Type 2019
CONTRIBUTORS: Emma Hutson & Betty Cathrow
9%
9%
0%
Residential
Apartment
House
Townhouse
Commerical Rental Rate Range • As offices adjusted to a new way of doing business over this period, we saw a significant decline in demand for new office space. • Most businesses were forced to look carefully at reinventing the way they operate by offering more online services and products and having employees work remotely. • Some businesses however, continue to require office space due to regulations and business requirements. • For current information on shifting attitudes toward working from home visit - https://bit.ly/3555rXC
Somerley, Worthing, Christ Church, BB15009, Barbados Tel: +1 (246) 434-9000 terracaribbean.com
Commercial
Speightstown
Holetown
Bridgetown
Oistins
Key Observations • The West Coast and South Coast of Barbados proved to be popular locations for most long term rentals in Q2 to enable access to the array of amenities, public transport and beaches. • We have seen a few more remote rentals in the North West, East and Central Barbados as clients look for houses with more outdoor space. • Warrens and Welches are sought-after locations for commuters working in these areas and for students at UWI.
Sales Market Review Q2 2020
Average Sale Price For Residential Properties By Parish
Average Achieved Sale Price by Parish Q2 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0
Christ Church
Saint George
Saint James
Saint Lucy
Saint Michael
2019 Avg. achieved sale price BDS
Saint Peter
Saint Philip
Saint Thomas
2020 Avg. achieved sale price BDS
Sales Price Range For Residential & Commercial Including Land
Residential Sales By Property Type In Q2 we saw a 50% decrease in the number of house sales. Land sales continue to be concentrated on the South Coast and South Central parts of the island primarily priced below BDS$200,000. Interestingly, we have seen a shift to the West Coast with apartment sales. Demand for commercial and agricultural land demand has risen for Q2. 39%
2019 2020 0%
10%
26%
20%
44%
17%
30% 30%
House
40%
9% 50%
Apartment
• In Q2 2020 residential sales ranged from $342k for a traditional home to $10m for a luxury villa. • The overall average price in Q2 2020 was up to $1.5m from $635k in Q2 2019. • There were two beachfront condo sales in St. James and two marina units in Port St. Charles during this quarter. • As mentioned in our Q1 report, there has been an increase in demand for property in St. Peter.
60%
35% 70%
80%
Townhouse
90% 100%
ACHIEVED SALE PRICE YEAR
MIN
MAX
2019 $79,200 $9,700,000
AVERAGE $802,777
2020 $87,000 $10,000,000 $1,054,321
-36%
• There was an impressive Y.O.Y. increase in the average achieved sale price by 23.1% for Q2. • The number of sales transactions decreased by 36% in Q2 2020 compared to Q2 2019. This was driven by the COVID lockdown restrictions as attorneys and banks were not able to close transactions digitally.
Land
Discount To Sales Price Range For Residential & Commercial Including Land
Sales Locations
Build Land
ACHIEVED SALE PRICE Speightstown
YEAR
MIN
MAX
AVERAGE
2019
0%
23%
5.7%
2020
0%
25.4%
6.4%
• Average discount for billed sales was up 6.4% up from 5.7% in Q2 2019. In Q2 2020 we agreed sales with an average discount of 11.5%. • The discount on offers during the period ranged from 0% 29.9% with some properties acheiving full price despite COVID’S impact on the world. For example, we launched Harmony Estates in Christ Church in March and have agreed 51 sales at full price during this quarter. • We have also agreed sales in some luxury developments at full price.
Somerley, Worthing, Christ Church, BB15009, Barbados Tel: +1 (246) 434-9000 terracaribbean.com
Y.O.Y TRANSACTION CHANGE
Holetown
Bridgetown Oistins
KEY OBSERVATIONS
•
In Q2 we closed sales mainly on the West and South Coast of Barbados. There has been an increase in demand for investment and second home properties. The West and South Coast of Barbados remain popular locations for purchasing property as they are closer to the beaches, amenities and facilities that Barbados has to offer. • The airport reopened in June, which enabled clients to fly in and view properties in person with the amended protocols.
CONTRIBUTORS:
Emma Huston
Betty Cathrow
Somerley, Worthing, Christ Church, BB15009, Barbados Tel: +1 (246) 434-9000 terracaribbean.com