RENTAL & SALES MARKET REVIEW Q2 2021
RENTAL MARKET REVIEW Q2 2021
CONTRIBUTORS: Emma Hutson & Betty Cathrow
ACHIEVED RENT METRICS Q2 2021
Avg. Achieved Rent Metrics Q2 2020 and 2021 40,000 Achieved Rent (BDS)
35,000 30,000 25,000
-32%
10%
20,000 15,000 74%
10,000 5,000
18%
5%
62%
0
1 Bed
3 Beds
2 Beds
5 Beds
4 Beds 2020
• Demand for mid-term rentals which typically command higher rental rates continued to be strong, leading to higher average rental rates in all but the 5 bed category. • We have continued to see an increase in digital nomads coming to work remotely in Barbados including families with children. • In Q2 2021, the average rental rate for 4 bedrooms experienced the highest jump with prices increasing by 74%, followed closely by 1 bedrooms which increased in price by 62%. • The only decrease was in the 5+ bedrooms unit sector from BDS$34,000 per month to BDS$25,000.
6+ Beds
2021
RESIDENTIAL RENTAL RATE RANGE
RESIDENTIAL RENTALS FOR Q2 YEAR
MIN
MAX
2020
$1,000
$34,000
$5,330
2021
$1,100
$60,000
$5,878
• In Q2 2021, the maximum achieved rental rate was almost double that compared to Q2 2020. • Overall the average achieved rental rate increased by 10% (BDS$548).
AVERAGE
Q2 RENTALS BY PROPERTY TYPE
Q2 RENTALS BY NO. OF BEDROOMS
% SHARE OF RENTAL TRANSACTIONS Q2 2020 VS Q2 2021
150%
60
158%
No. of Rentals
50 40 30 20
1200% 125% 500%
10
0%
0
1 Bed
2 Beds
3 Beds
2020
4 Beds
5 Beds
6+ Beds
50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%
47%
Apartment
2021
• There were notable increases of between 125% and 1200% in the number of properties rented in the 1-5 bedrooms categories. • While the number of 6 plus bedroom properties rented remained steady, growth in this category is likely restricted by the low supply of these properties. • Demand continues to be highest for two and three bedroom properties accounting for 69% of transactions. • Demand for 1 bedrooms increased significantly from 1% to 14% of transactions driven by an increase in demand from single professionals working remotely in Barbados. • Furnished rental properties continue to be in highest demand accounting for 87% of our achieved rentals over the quarter which accounted for 89 rentals. This has been driven by the "Welcome stamp" enquiries as an unfurnished property is not practical for stays of 12 months or less.
House
Townhouse
• Townhouses saw an increase in the market share of rental transactions of 5%. • Townhouses in gated communities may have increased in popularity due to the security and amenities that they offer. • While the market share of rental transactions relating to houses declined by 3%, the average achieved rental price for a house increased by 679%. This is due to the increased demand for luxury rental homes.
RENTAL LOCATIONS
Residential Commercial
Speightstown
Q2 YOY TRANSACTION % VAR Holetown
Increase in # of transactions
188% • We rented an impressive 188% more properties in Q2 2021 compared with Q2 2020 with rental transactions almost tripling from 33 rentals in Q2 2020 to 95 in Q2 2021. • This has been driven by the demand from "Welcome Stampers" which would not have existed in 2020 as this initiative was introduced later in the year. • In addition, during Q2 2020 the island was in lock down for April to June which would have negatively impacted demand.
Bridgetown
Oistins
Key Observations • The majority of residential rentals were clustered around the West and South Coast; Holetown, Worthing, Hastings and Speightstown. • We saw a small movement of residential rentals moving towards the East Coast and inland in St. George. • The commercial rental was close to the hub of Bridgetown.
YTD STATS AT A GLANCE Transactions 88%
Rental Revenue 153%
Average Rental Rate 34%
Lead Volume 63%
SALES MARKET REVIEW Q2 2021
CONTRIBUTORS: Emma Hutson & Betty Cathrow
SALES PRICE RANGE FOR RESIDENTIAL AND COMMERCIAL INCL. LAND
ACHIEVED SALE METRICS Q2 2021
Average Achieved Sale Price by Parish Q2
Achieved Sales (BDS)
3,500,000 3,000,000
RESIDENTIAL SALES FOR Q2
2,500,000 2,000,000 1,500,000 1,000,000 500,000 0
Christ Church
Saint James
Saint George
Saint Saint Joseph Michael
2020
Saint Peter
Saint Philip
YEAR
MIN
MAX
AVERAGE
2020
$87,000
$10,000,000
$1,064,918
2021
$105,000
$3,200,000
$664,561
2021
• In Q2 2020, averages were bolstered by the sale of 2 luxury villas priced between $5 mil and $10 mil. • Sales in this bracket were absent in Q2 2021 but activity between $1 mil and $4.95 mil was very strong with 11 sales in Q2 2021 vs just 2 in Q2 2020. • Christ Church saw a notable increase in demand with 5 sales above $1 mil and an overall increase in transactions of 250%. This was driven by Harmony Estates Development and the popular land developments at South View and The Grove.
• The average sales price in St. James in Q2 2020 was bolstered by the sale of one penthouse for $10 million. However, overall demand increased with 75% more transactions in Q2 2021. • The average achieved sale price remained steady in St. Peter, but there were 60% fewer transactions.
Overall activity strengthened with the number of sales transactions doubling in 2021.
Q2 RESIDENTIAL SALES BY PROPERTY TYPE
2020
25%
2021
10%
29%
33%
58%
2%
13%
0%
4%
8%
20%
30%
Apartment
40%
25%
50%
Apartment Building
60%
House
70%
80%
Land
2% 90%
100%
• The number of houses sold in Q2 2021 quadrupled compared to Q2 2020, this was driven by the volume of homes sold at Harmony Estates. • The same number of apartments and apartment buildings were sold in Q2 2020 & 2021. • Although the volume of land sales transaction in Q2 increased by 50% in 2021 the proportion of all transactions decreased.
Townhouse
DISCOUNT TO SALE RANGE FOR RESIDENTIAL AND COMMERCIAL
SALES LOCATIONS
ACHIEVED SALE PRICE FOR Q2
Residential Commercial
Speightstown
YEAR
MIN
MAX
AVERAGE
2020
-1%
25.4%
6.1%
2021
-4.9%
32.2%
5.5%
Holetown
Bridgetown
• Average discount levels moved from 6.1% in Q2 2020 to 5.5% in Q2 2021. • The closing of this gap on negotiating off the listed sales prices is a likely result of increased demand coupled with decreasing supply, a promising sign of some strengthening in the market. • We have seen an increase in the number of properties receiving simultaneous offers as evidenced by our selling one property at 4.9% over the listed sale price in Q2 2021.
Oistins
• The majority of residential sales were located on the South and West coast of Barbados. • Christ Church experienced high demand with 17 sales clustered at the Harmony Estates development, 7 at South View and 3 at The Grove. • 2 agricultural lots were sold in St Thomas that have permissions for single dwelling residential use.
YTD STATS AT A GLANCE Transactions 64%
Sales Revenue -8%
Lead Volume
26%
CONTRIBUTORS:
Emma Hutson
Betty Cathrow
The data in this report is solely from the transactions completed and statistics recorded by Terra Caribbean.
A COMPLETE LOOK AT 2020
Rental & Sales Market Review
Rental & Sales Market Review
Q1 2020
Q2 2020
Rental & Sales Market Review
Rental & Sales Market Review
Q3 2020
Q4 2020
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