Despite localized outbreaks, according to Knight Frank's new Global Property Index, a number of global cities are seeing sales volumes rebound, with April so far looking to be the low point for residential activity. qatar sales
New outbreaks have been recorded in parts of the United States (Southern and Western states), Spain (Catalonia, Galicia), and Melbourne, which has resulted in the city being placed on lockdown once more and the state border between Victoria and New South Wales being closed for the first time in 100 years. Perth has also set a weekly cap of 525 international arrivals.
The UK has also released its long-awaited 'traffic-light' list of 74 countries and territories to which British citizens will be able to travel without being self-isolated as of July 10. Although France, Spain, Italy, and Germany are currently included, Portugal, the United States, and Canada are not. Despite their inclusion on the list, Australia and New Zealand's borders remain locked. Under the terms of the agreement, residents of Scotland, Wales, and Northern Ireland will still be required to self-isolate when returning from "amber" rated countries.
Capital Economics has raised its GDP estimates for 2020 in the Eurozone, citing a faster-than-expected recovery in activity.
In the United Kingdom, Chancellor Rishi Sunak proposed a slew of policies to stimulate the economy, including an immediate stamp duty exemption for homes priced under £500,000.
Europe is a continent that has a
According to Knight Frank's new Spain Covid-19 survey, the private rental market (PRS and build-to-rent) in the country's major cities is expected to thrive as banks become more vigilant when lending to individuals while continuing to look favorably on funding residential growth.
A new study confirms the locations of Spain's most luxurious houses. The 25 Spanish towns where average prices surpassed €3,300 per square meter in the first quarter of 2020, according to data from online platform BrainesRe, include eight municipalities on the Balearic Islands.
In the United Kingdom, June presented more proof that price declines in prime London property markets are bottoming out, with quarterly declines narrowing across the capital. Prices in prime central London dropped 3.6 percent in the three months to June, down from a -4.4 percent drop in May.
To inject some life into the UK housing market, UK Chancellor Rishi Sunak declared a stamp duty holiday for UK buyers until March 31, 2021.
Asia and the Pacific
In June, residential activity increased in several cities across Asia Pacific, with China and Hong Kong leading the way. Due to the continuing difficulties of Covid lockdowns, sales volumes in Melbourne and Jakarta have decreased. In five of the 19 cities we monitor, asking prices are now rising, and sales are growing in eight of them.
According to Knight Frank's latest study - Where Next for Asian Investors? - despite its weakening economy and the effects of US-China tensions, prices in Singapore have only fallen by 1% since Q4 2019.
Low interest rates, currency volatility, and some discounts are expected to boost cross-border trade across the region in the second half of 2020. Singapore, Australia, and the United Kingdom are likely to be three of the most popular destinations for investors seeking stability, diversification, and developed markets.
In the flurry of legislation enacted in response to Covid-19, several minor amendments to Australia's foreign investment laws emerged. The biggest change for international buyers is the extended timeframe for the application process, which has been increased from 30 days to six months. Our local team has put together a helpful guide for everything you need to know.
CoreLogic's new market data show that prices fell by 0.7 percent in June, following a 0.4 percent drop in May. Despite recent drops, residential prices in Sydney and Melbourne are still up 13.3% and 10.2% year on year, respectively.
Plus, it's not just the UK revisiting stamp duty; a draft review of Australia's tax and federal-state funding mechanisms includes a proposal to substitute stamp duty with a land tax, among other suggested reforms.
Canada and the United States of America
According to the US Mortgage Banks Association, the total value of a home purchase mortgage application in the United States reached a new high of $359,000 at the end of June. According to Capital Economics, previous spikes in house price growth in 2008 and 2011 were not followed by an acceleration in house price growth. Given that a new house is on average 12 percent more costly than an existing home, one possible reason for the rise in mortgage size is the relative intensity of new home sales compared to existing home sales.
The announcement this week that international students at US universities and schools would no longer be able to remain in the country if their courses transfer fully online due to the coronavirus may have ramifications for key housing markets where student populations make up a significant portion of demand.
Around one million international students, according to Gzero, a subsidiary of Eurasia Group, a political risk analysis company, are awaiting confirmation of their university or school's teaching plans for the next term.
In Canada, Greater Vancouver saw 2,497 homes change hands in June, up from 1,506 in May, marking the fifth highest monthly sales total since May 2018. Despite the pandemic, revenue volumes are up year over year, with 11,471 sales in the first half of 2019 compared to 10,992 in the first half of 2018, showing some stability in a sector that has been sluggish in recent years due to tax reforms.
Prior to the outbreak of the Covid-19 pandemic, Dubai's property market had begun to show early signs of a rebound in demand, according to Middle East Knight Frank's latest UAE Residential Market Review. Transaction volumes rose by 24% in the year to February 2020 compared to the same timeframe the previous year, marking the market's best start to the year since 2017.
Despite strict containment measures imposed during the lockdown, the residential sector in Dubai did not come to a complete halt. Despite the fact that transaction activity has slowed, the contraction has been relatively shallow. Transaction volumes fell 14.4% in the year to June 2020 as compared to the same timeframe the previous year. As a result of demand softening and the influx of supply anticipated in 2020, average prices, which dropped on average by 5.6 percent in the year to May 2020, are likely to remain under pressure.