Resale Apartments Market Report - The Pearl Qatar - 1stQ 2021

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RIDUANUR QURESHI ASSOCIATE FINANCIAL ANALYST

REPORT FROM THE PEARL GATES The Pearl Qatar Secondary Market Q1 2021. Due to the current Residency Permit law, Qatar saw a surge in real estate demand in the first quarter of 2021. In comparison to the previous quarter, the value of units has increased by 4% to 10%. Studio apartments have seen a 10% increase in market value when compared to two and three bedroom apartments, owing to the better rate of return on investment. End users on the other hand, prefer apartments with two to three bedrooms. In the secondary market, about 120 apartments were listed. According to the statistics, 36% of the listed apartments are two-bedroom apartments, 27 % are one-bedroom apartments, 21% are three-bedroom apartments, and 16% are studio flats. The average sales price of resale flats has climbed by 5% to 10%, with studio flats seeing a 10% increase. On average, a studio apartment costs 1.1 million QAR, a one-bedroom apartment costs 1.47 million QAR, a twobedroom apartment costs 2.3 million QAR, and a three-bedroom apartment costs 3.2 million QAR. In Q1 2021, there was a lot of demand for smaller apartments on the secondary market. The demand for these flats will continue to grow until more ready-to-move-in flats become available. In the secondary market, discount prices range from 4% to 5% on average.

THE PEARL GATES


By Location The Pearl QoQ Listed Units

Studio

23

-8%

Average Price

1,153,291 QAR

10%

Median Price

1.150,000 QAR

6%

17,743 QAR

10%

Average PSQm Average Size

Avg Discount

5%

65 SQM

In the first quarter of 2021, there were 23 newly listed Studio units for sale on the secondary market, down 8% from the previous quarter. The average listing price and median price for a studio apartment are both $1.15 million, up 10% and 6% respectively from the previous quarter's Q4 2020. The typical apartment size is 65 m², and the average PPSM is QAR 17,743, up 10% from last year as demand for studio units rose. In the first quarter of 2021, demand for studio flats grew as a result of a new residential permit law. The average sales and median price are both QAR 1.1 million, up 10% and 8% from the previous quarter. The average PPSM sales price is QAR 16,920, up 10% from the previous quarter.

QoQ Listed Units

One Bedroom

29

-16%

Average Price

1,540,313 QAR

5%

Median Price

1,508,455 QAR

5%

12,833 QAR

4%

Average PSQm Average Size

Avg Discount

4%

120 SQM

Twenty-nine one-bedroom apartments were newly listed for sale in the secondary market in the first quarter of 2021, compared to 16% fewer in the fourth quarter of 2020. A one-bedroom apartment is typically 120 m² in size. The average listed price climbed by 5% to QAR 1.54 million, while the median price grew by 4% to QAR 1.5 million. The average PPSM for a one-bedroom apartment increased by 4% to QAR 12,833. During Q1 2021, The median sales price for a one-bedroom apartment was QAR 1.45 million, with an average sales price of QAR 1.47 million. The percentages were increased by 5% and 5%, respectively. The PPSM, based on an average sales price of QAR 12,505, has climbed by 3%, with a discount price of roughly 4%.

Data in Visualization 25,000

150

2,000,000

2,000,000

120

20,000 1,500,000

15,000

10,000

1,500,000

90

60

1,000,000

1,000,000

30

5,000 0

0 Average PSQm

0

0 Average Size Average Price

Median Price

THE PEARL GATES

Average Price


By Location The Pearl QoQ Listed Units

Two Bedroom

40

33%

Average Price

2,406,063 QAR

0.3%

Median Price

2,400,000 QAR

2%

13,264 QAR

0%

Average PSQm Average Size

Avg Discount

4%

181 SQM

A large number of two-bedroom apartments joined the secondary market in Q1 2021. These two-bedroom apartments are typically 181 m² in size. In the second quarter of 2020, almost 40 two-bedroom apartments were listed on the secondary market, up 33% over the previous quarter. A two-bedroom apartment's average listing price is QAR 2.4 million, while its median price is QAR 2.4 million. The PPSM was estimated to be QAR 13,264 on average. In comparison to the fourth quarter of 2020, the average and median price of these advertised flats will remain relatively stable. The average selling and median price for a two-bedroom flat in Qatar is QAR 2.3 million, up 5%. The average selling PPSM for a two-bedroom flat has climbed by 5% to QAR 12,693, with a discount rate of 4% on average.

QoQ Listed Units

Three Bedroom

20

11%

Average Price

3,416,864 QAR

3.5%

Median Price

3,500,000 QAR

6%

13,559 QAR

4%

Average PSQm Average Size

Avg Discount

7%

252 SQM

In the Pearl district of Qatar, approximately 20 three-bedroom flats were newly listed on the secondary market. The average size of these three bedroom flats is 252 square meters. The current average listed price is 3.4 million dollars. This price increased by 3.5% and the median price is now 3.5 million, up by 6% from the previous quarter. The median PPSM price for these three-bedroom apartments increased by 4% to QAR 13,559. The average sales price and median price for three-bedroom flats, on the other hand, increased by 3% to 3.2 million dollars. With a 7 percent average discount rate, the estimated selling PPQM price increased by 3% to QAR 12,692.

Data in Visualization 25,000

300

3,500,000

3,500,000

240

20,000 3,000,000

15,000

10,000

3,000,000

180

120

2,500,000

2,500,000

60

5,000 0

0 Average PSQm

0

0 Average Size Average Price

Median Price

THE PEARL GATES

Average Price


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