Rental & Sales Market Review Q3 2020
Rental Market Review Q3 2020
Residential Rental Rate Range
Avg. Achieved Rent Metrics Q3 2019 and 2020 20,000 18,000 Achieved Rent (BDS)
16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0
1 Bed
3 Beds
2 Beds
5 Beds
4 Beds
2019
6+ Beds
2020
Achieved Rent Metrics Q3 2020 • Highest rental rate achieved during Q3 was $17,500 for a 6+ bed property. • Achieved higher average rates for 1, 2 and 4 bed properties. • There was a decrease in average rates achieved for 3 and 5 bed properties. • New demand for 6+ bed properties is evident with 6 rentals this quarter. • As a result of the high demand, rental rates are far less negotiable with rental properties in central locations achieving full price.
3 Beds
2 Beds
4 Beds
2019
5 Beds
6+ Beds
2020
Q3 Rentals by Property Type 2019
49%
2020
RESIDENTIAL RENTALS FOR Q3 YEAR
MIN
MAX
AVERAGE
2019
$1,100
$34,000
$5,388
-
2020
$1,400
$24,000
$6,444
74%
• 3 Bedroom properties continue to be in the highest demand. • There has been an increase in demand in every bedroom category. The most notable increases are for 4 and 6+ bedroom rentals, which tend to be at the luxury end of the market. • We have seen an increase in families coming from overseas via the Barbados Welcome Stamp. Many require a home office, extra bedrooms for guests visiting and staff. • Furnished rental properties accounted for 91% of our achieved rentals over the quarter. This has been driven by the "Welcome stamp" enquiries as an unfurnished property is not practical for stays of 12 months or less.
14%
51%
Residential
16%
Commercial
Speightstown
0%
10%
20%
30%
40%
Apartment
50%
House
60%
Y.O.Y TRANSACTION %VAR
Rental Locations
37%
33%
• Rental demand has surged with 74% more transactions in Q3 2020. • The majority of demand is from foreigners moving to Barbados, for mid to long term periods, on the Welcome Stamp. • This has altered the length of leases and increased demand in the luxury end of the market. • Barbados has also received significant publicity resulting from the way it is handling COVID, it’s strong leadership, and the Welcome Stamp initiative. • While maximum rental rates were higher in 2019, overall average rates increased 20%. • Total Q3 rental revenue is up 108% year on year setting a new benchmark for the period.
Residential Rentals by No. of Bedrooms
Q3 Rentals by Bedroom Count
1 Bed
CONTRIBUTORS: Emma Hutson & Betty Cathrow
70%
80%
90%
100%
Townhouse
• Demand for stand alone houses has increased 14% and for townhouses by 2%. • The apartment segment has been negatively impacted declining 16%. This shift has been driven by: • Requests for more private outdoor space driven by COVID • A marked increase in the number of tenants who have pets including those on “Welcome Stamp”
Holetown
Bridgetown
Oistins
% Share of Rental Transactions
Key Observations
Q3 2019 VS Q3 2020 60% 50% 40%
51%
49% 37%
33%
30% 20% 10%
16%
14%
0%
Apartment
House
• As expected, the rentals on the South and West Coast are concentrated around areas with amenities and beaches close by. For those not hiring a car, access to public transport routes is vital. • A few rentals have chosen to be closer to the private schools Codrington & Providence. • Commercial rentals have decreased by 80% and continue to be focused in the primary hubs of Bridgetown & Warrens.
Townhouse
YTD STATS AT A GLANCE Transactions 7%
Value of Rentals 17%
Average Rental Rate 9%
Lead Volume 33%
Sales Market Review Q3 2020
Average Sale Price For Residential Properties By Parish
Average Achieved Sale Price by Parish Q3 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0
Christ Church
Saint George
Saint James
Saint Saint Lucy Michael
Q3 2019
Saint Peter
Saint Saint Saint Saint Philip Thomas Joseph John
Q3 2020
Residential Sales By Property Type • Demand for houses & land has grown, while that for townhouses and apartments has decreased. • The distribution of agreed sales during Q3 showed similar trends. • There were 77 agreed sales in Q3. 51% of these were for houses bolstered by the success of Harmony Estates, and 39% were for land. • There has been an increased demand for land especially agricultural. • Three apartment buildings were sold in Q3 2020.
2019
14%
31%
2020
13%
42%
0%
10%
20%
30%
Apartment
24%
31%
35% 35% 40%
50%
House
60%
70%
Townhouse
80%
10%
• The highest averages for achieved sales prices continue to be led by St. James and St. Peter. • St. James and St. Peter reported more than double the average sales price of other parishes. • The average sales price for property in St. James grew from Bds$2.1M to Bds$3.3M. • While the average sales price in St. Peter declined significantly from Bds$4.9M to Bds$1.6M. • Central, North and South-East districts experienced an increase in demand.
Sales Price Range For Residential & Commercial Including Land ACHIEVED SALES PRICES FOR Q3 YEAR
MIN
MAX
AVERAGE
Y.O.Y TRANSACTION CHANGE
2019 $91,000 $14,000,000 $1,452,442 2020 $82,000 $13,200,000 $1,555,660
-11%
• We closed 11% fewer transactions in Q3 2020 compared with a year earlier. • It is not surprising that the number of transactions were reduced given the COVID 19 pandemic. • However, the average sales price achieved increased 7% from $1.45M to $1.56M.
90% 100%
Land
Sales Locations Discount To Sales Price Range For Residential & Commercial Including Land
Residential Commercial Agricultural
Speightstown
DISCOUNT TO SALES PRICE RANGE FOR Q3 YEAR
MIN
MAX
AVERAGE
2019
0%
33%
10%
2020
0%
44%
10%
• The average discount for billed sales remained steady during Q3 at 10%. This reiterates that prices are now in line with market value. • The discount on offers during the period ranged from 0% - 44% with some properties acheiving full price despite COVID 19's impact on the world. • An apartment with restricted use saw the highest discount of 44%. • Prices appear to be strengthening with the average discount on agreed sales during Q3 being just 6.5%.
Holetown
Bridgetown Oistins
KEY OBSERVATIONS
• Sales are more dispersed than usual. • West Coast sales are concentrated around the coastline. • South Coast and central have become widely dispersed as purchasers pursue land and houses. • Commercial transactions doubled but remained within business hubs. • There is increasing demand for agricultural real estate for non traditional uses.
YTD STATS AT A GLANCE Transactions 26%
Sales Revenue 13%
Average Sales Rate 52%
Lead Volume 6%
CONTRIBUTORS:
Emma Hutson
Betty Cathrow
Somerley, Worthing, Christ Church, BB15009, Barbados Tel: +1 (246) 434-9000 terracaribbean.com
The data in this report is solely from the transactions completed and statistics recorded by Terra Caribbean.