Rental & Sales Market Review - Q4 2020

Rental & Sales Market Review Q4 2020

Rental Market Review Q4 2020

Achieved Rent Metrics Q4 2020

Avg. Achieved Rent Metrics Q4 2019 and 2020 18,000

62%

14,000 12,000

37%

10,000

REMOVE % -100%

52%

8,000 6,000

13%

4,000

9%

2,000 0

1 Bed

3 Beds

2 Beds

5 Beds

4 Beds

2019

• Average achieved rental rates increased across the board for 1-5 bedroom properties.

• The largest increases were evident in the luxury segments for 3-5 bedroom properties.

• Increased rates have resulted from: - Low supply due to the unprecedented demand - A greater number of medium term rentals which tend to secure higher prices • No 6+ bedroom properties were rented during Q4 2020.

6+ Beds

2020

Residential Rental Rate Range • The majority of demand continued to be from foreigners moving to Barbados mid to long term on the Welcome Stamp.

• The maximum rental rate in Q4 2020 was three times higher than Q4 2019.

• The average rental rate increased by 24% ($1,392).

RESIDENTIAL RENTALS FOR Q4 YEAR

MIN

MAX

AVERAGE

2019

$800

$12,000

$4,454

2020

$1,000

$36,000

$5,846

Increase in # of transactions

111%

Residential Rentals by No. of Bedrooms • There were significant increases in demand for 1- 4 bedroom properties.

• Demand for one bedrooms was close to triple the prior year.

• Demand for two, three and four bedrooms doubled.

• Demand was highest for three bedroom properties accounting for 45% of transactions.

• Furnished rental properties continued to be in highest demand accounting for 89% of our achieved rentals over the quarter which accounted for 117 rentals. This has been driven by the "Welcome stamp" enquiries as an unfurnished property is not practical for stays of 12 months or less.

• The number of rental transactions in Q4 2020 more than doubled what was achieved Q4 2019.

• There was a corresponding increase in rental revenue of 177% setting new benchmarks year on year.

Q4 Rentals by Bedroom Count 70 60

No. of Rentals

Achieved Rent (BDS)

16,000

CONTRIBUTORS: Emma Hutson & Betty Cathrow

50 40 30 20 10 0

1 Bed

2 Beds

3 Beds

2019

4 Beds

5 Beds

6+ Beds

2020

Rental Locations Q4 Rentals by Property Type Residential

2019

63%

2020 0%

Commercial

Speightstown

23%

34%

51% 10%

20%

30%

Apartment

15%

40%

50%

House

60%

70%

15% 80%

90%

Holetown

100%

Townhouse Bridgetown

• As illustrated in prior quarterly reports, demand for houses has increased, whilst demand for apartments has decreased since Covid.

• There was an 11% increase in the demand for houses, accompanied by a corresponding 12% decline in demand for apartments.

• Apartments however, still accounted for 51% of total rental transactions.

Oistins

Key Observations • The majority of the rentals hugged the coastline of the South & West Coasts of Barbados due to the ease of access to amenities, the beach and public transport.

• A selection of rentals occurred centrally and on the East coast.

• Commercial rentals were predominantly found in business hubs surrounding Bridgetown, Cane Garden and Oistins.

ADD IN

YTD STATS AT A GLANCE Transactions 34%

Rental Revenue 53%

Average Rental Rate 15%

“LEAD VOLUME” UP 47

Sales Market Review Q4 2020

Average Sale Price For Residential Properties

By Parish

Average Achieved Sale Price by Parish Q4

Achieved Sale (BDS)

3,500,000

• In line with expected industry trends, average achieved sale prices continued to be highest in St. James and St. Peter.

• Average prices in St. James remained steady around $2.9 M. • St. Peter saw an average price increase to $2.56 M. • The maximum average price achieved in the other parishes was well below these at $550 K.

3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0

Christ Church

Saint James

Saint Lucy

Saint Michael

Q4 2019

Saint Peter

Saint Philip

Saint Thomas

Q4 2020

Sales Price Range For Residential & Commercial Including Land Residential Sales By Property Type

ACHIEVED SALES PRICES FOR Q4

• The demand for houses and townhouses increased in line with trends we have seen since Covid.

• Demand for apartments remained steady.

• Demand for land decreased substantially.

- This is primarily due to the number of land sales which closed in the popular South View development during Q4 2019.

• The distribution of agreed sales for Q4 showed similar trends as Q3.

There were 38 agreed sales in Q4; 45% of these were for houses and 39% were for land.

2019

14%

2020

15% 0%

10%

46% 20%

30%

Apartment

40%

30% 35% 50%

House

60%

Land

70%

MIN

MAX

AVERAGE

2019

$81,000

$11,500,000

$1,164,211

2020

$83,000

$7,000,000

$988,233

• The maximum price was 39% lower in 2020 however, the average achieved price was only 15% lower compared to 2019.

Increase in # of transactions

51%

34%

YEAR

80%

9% 90% 100%

26%

• We closed an impressive 26% more transactions in Q4 2020 compared to Q4 2019.

• This would have been bolstered by sales closing at the popular local development Harmony Estates.

Townhouse

Sales Locations

Discount To Sales Price Range For Residential & Commercial Including Land DISCOUNT TO SALES PRICE RANGE FOR Q4 YEAR

MIN

MAX

AVERAGE

2019

-5%

43%

6%

2020

0%

30%

6%

• The average discount for billed sales in Q4 2020 remained steady with Q4 2019 at 6%.

• While some sales were achieved at larger discounted prices in Q4, 83% of transactions were sold at a discount of less than 10%.

- This is notable as demand has increased with 26% more transactions for the period and discount trends indicate that prices are in line with market despite Covid.

Residential Commercial Agricultural

Speightstown

Holetown

Bridgetown Oistins

KEY OBSERVATIONS

• Residential sales were predominantly clustered on the West Coast Coastline around Holetown & Speightstown.

• 11 sales closed at the new development; Harmony Estates.

• The lone commercial sale was localised to a popular commercial hub.

• An agricultural sale was closed in St Philip.

YTD STATS AT A GLANCE Transactions 13%

Sales Revenue 14%

Average Sales Rate 31%

Lead Volume 4%

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

Rental & Sales Market Review

Q1 2020

Q2 2020

Q3 2020

Somerley, Worthing, Christ Church, BB15009, Barbados Tel: +1 (246) 434-9000

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