Rentals & Sales Market Review - Q3 2020

Page 1

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.


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.