RENTAL MARKET REVIEW Q3 2021
CONTRIBUTORS: Emma Hutson & Betty Cathrow
ACHIEVED RENT METRICS Q3 2021 Avg. Achieved Rent Metrics Q3 2020 and 2021 14%
40,000 Achieved Rent (BDS)
35,000 30,000 25,000 20,000 15,000 10,000 5,000
19%
16%
-10%
29%
-59%
0
1 Bed
3 Beds
2 Beds
5 Beds
4 Beds 2020
6+ Beds
2021
• Our review of the data that The Terra Group has collected shows
that average rental rates continue to increase for 1, 2, 3 & 6 bedroom properties. Increases in these segments ranged from an impressive 14 - 29%. • There was a 10% decline in average rates for 4 bedroom properties and a significant decline of 59% in the 5 bed segment. • The 6 bedroom rentals were all based in St. James in prestigious neighbourhoods such as Sandy Lane, Sugar Hill & Royal Westmoreland. • Most of the rental demand is for furnished properties with this category accounting for 86% of transactions in Q3 2021. There was however a 5% increase in the market share of unfurnished or appliances only rental transactions due to the return of corporate expats and local rentals.
RESIDENTIAL RENTAL RATE RANGE • Although the maximum rental price achieved was BDS$16,000 higher RESIDENTIAL RENTALS FOR Q3 YEAR
MIN
MAX
AVERAGE
2020
$1,400
$24,000
$6,405
2021
$1,500
$40,000
$6,292
in Q3 2021 than Q3 2020, there was a 4% reduction in the average rental rate achieved. • The decrease in average overall rental rate is a result of fewer 4-plus bedroom rentals this quarter. In Q3 2020 4 plus bedroom rentals were 26% of all transactions, while this quarter they represented just 10%. • The minimum rental rate for Q3 in both 2020 & 2021 was similar. We have also seen an increase in corporate rentals demanding unfurnished homes as Embassies etc. begin to transfer employees and their families to Barbados again.
Q3 RENTALS BY PROPERTY TYPE
Q3 RENTALS BY NO. OF BEDROOMS
% SHARE OF RENTAL TRANSACTIONS Q3 2020 VS Q2 2021
50
70% No. of Rentals
60%
60%
38
50%
25
50%
40% 13
30% 20%
0
1 Bed
2 Beds
3 Beds
4 Beds
5 Beds
6+ Beds
35%
30%
16%
10%
10%
0%
2020
2021
Apartment
• Two bedroom properties were the only sector in Q3 2021 to
have an increase in demand compared to that of Q3 2020. • We rented thirty-six 2 bedroom properties in Q3 2021 vs 22 in Q3 2020. • It is worth noting that the supply of 4-plus bedroom luxury rental properties is very low as a result of the uptick of the tourism sector which is expected to be very busy with short stay visitors for the upcoming season so this would have negatively impacted rental transactions. • The overall decline in transactions is due to a combination of factors including: The sudden surge we saw last year with families coming to Barbados during the height of the COVID pandemic when the Welcome Stamp was first introduced; continued strict protocols and low vaccination rates in Barbados which inhibit some arrivals; and the reopening of many countries allowing greater freedom in home countries.
House
Townhouse
• In Q3 2021 we rented 20 more apartments than we did in
Q3 2020 leading to a 25% increase in market share of rental transactions. • While the number of townhouses and houses rented both decreased by 44% leading to declines in the market share. • The average rental rate for apartments and townhouses increased while that for houses declined.
RENTAL LOCATIONS
Residential Commercial
Speightstown
Q3 YOY TRANSACTION % VAR Holetown
Bridgetown
Decrease in # of transactions
-9%
Oistins
Key Observations • West and South Coast remain popular locations for residential
rentals. • Commercial rentals focused around commercial districts on the South Coast and one in the new hub of Six Roads. We have seen an increase in demand for certain developments such as Coverley with ROSS students and Vuemont with Welcome Stampers.
THE DATA IN THIS REPORT IS SOLELY FROM THE TRANSACTIONS COMPLETED AND STATISTICS RECORDED BY TERRA CARIBBEAN.
YTD STATS AT A GLANCE Transactions 40%
Rental Revenue 58%
Average Rental Rate 13%
Lead Volume 5%
SALES MARKET REVIEW Q3 2021
CONTRIBUTORS: Emma Hutson & Betty Cathrow
SALES PRICE RANGE FOR RESIDENTIAL AND COMMERCIAL INCL. LAND
VOLUME OF TRANSACTIONS BY PARISH Q3 2021
RESIDENTIAL SALES FOR Q3
30
271%
Volume of Sales
23 15
44%
8
0% -100%
-67%
0
Saint Christ Saint Church Andrew George
Saint James
Saint Lucy
2020
-100%
Saint Michael
MIN
MAX
AVERAGE
2020
$82,000
$13,200,000
$1,324,285
2021
$60,000
$6,700,000
$658,527
-20%
-50%
0%
YEAR
Saint Peter
Saint Saint Philip Thomas
2021
The number of SALES transactions in Q3 were
• The number of sales transactions in Q3 were up by 50% in 2021. This was
driven by the number of sales closing at popular projects like Harmony Estates, South View and The Grove in Christ Church resulting in a 271% increase in that parish. The high number of transactions in these developments coupled with prices below $300k contributed to a lower overall average price in Q3 2021. In Q3 2020 averages were also bolstered by the sale of a luxury villa in Sandy Lane priced at $13.2mil. While the highest sale achieved in Q3 2021 was for a villa in St. James at $6.7mil. St. James was the second most popular parish with a 44% increase in the number of sales closed. The number of transactions in other parishes either remained steady or declined.
• • • •
UP by 50% in 2021.
Q3 RESIDENTIAL SALES BY PROPERTY TYPE • Land and stand alone homes continued to lead the number of •
2020
12%
38%
9%
9%
32%
• 2021 0%
41%
41%
14% 10%
20%
30%
Apartment
40%
50%
Apartment Building
60%
House
70%
4% 80%
Land
90%
100%
•
Townhouse
•
transactions by property type. There were 61% more homes sold in Q3 2021, driven by sales at Harmony Estates leading to a 3% increase in the share of total transactions. There was an impressive 91% more lots of land sold in Q3 2021 driven by sales at The Grove and South View leading to a 9% increase in the share of total transactions. It is noteworthy that the 50% overall increase in the number of sales transactions resulted primarily from local buyers. Three new developments have been launched recently to cater to this demand including Carmichael land lots, and housing projects at Atlantic Breeze & Coverley. The number of apartment and townhouse related sales remained steady for Q3 2020 and 2021.
DISCOUNT TO SALE RANGE FOR RESIDENTIAL AND COMMERCIAL
SALES LOCATIONS
ACHIEVED SALE PRICE FOR Q3
Residential Commercial
Speightstown
YEAR
MIN
MAX
AVERAGE
2020
0.0%
44.1%
9.2%
2021
-3.0%
29.2%
5.3%
Holetown
• Average discount levels moved from 9.2% in Q3 2020 to
5.3% in Q3 2021. • This discount has slightly reduced from Q2 which reported an average discount of 5.5%. • This continued closing of the gap on negotiating off of listed sales prices is likely a result of vendors being more open to adjusting listing prices as a result of Covid, and an increase in demand coupled with decreasing supply. This is a promising sign of some strengthening of the market. • As mentioned in our Q2 2021 report, we have seen an increase in the number of properties receiving simultaneous offers as evidenced by one property selling at 3% above the asking price in Q3 2021.
Bridgetown
Oistins
High sales levels at popular developments Harmony Estates, The Grove & South View.
• In keeping with trends identified in prior reports, the
majority of residential sales were located on the South and West coast of Barbados. • Christ Church was in highest demand recording 51% of sales transactions. • There were no commercial or agricultural sales transactions.
THE DATA IN THIS REPORT IS SOLELY FROM THE TRANSACTIONS COMPLETED AND STATISTICS RECORDED BY TERRA CARIBBEAN.
YTD STATS AT A GLANCE Transactions 59%
Sales Revenue -14%
Lead Volume 18.5%