Despite localized outbreaks, according to Knight Frank's latest Worldwide Property Index, a lot of global locations are seeing sales volumes recover, with April so far proving to be the low point for residential activity.
New outbreaks have been reported 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 likewise set a weekly limit of 525 overseas entrants. hotels
The UK has also released its long-awaited 'traffic-light' list of 74 countries and territories to which British citizens would be able to go without being self-isolated as of July 10. While France, Spain, Italy, and Germany are currently covered, Portugal, the United States, and Canada are not. Despite their inclusion on the list, Australia and New Zealand's borders remain blocked. Under the provisions of the agreement, residents of Scotland, Wales, and Northern Ireland will still be required to self-isolate upon returning from "amber" rated nations.
Capital Economics has raised its GDP predictions for 2020 in the Eurozone, citing a faster-than-expected recovery in activity.
In the United Kingdom, Chancellor Rishi Sunak proposed a raft of measures to bolster the economy, including an immediate stamp duty break for property priced under £500,000.
Europe
According to Knight Frank's new Spain Covid-19 study, the private rental sector (PRS and build-to-rent) in the country's major cities is projected to thrive as banks grow more cautious when lending to individuals while continuing to look favorably on funding residential development.
A new study reveals the locations of Spain's most costly residences. The 25 Spanish towns where average prices topped €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 revealed more signs that price decreases in key London property markets are bottoming out, with quarterly declines narrowing across the capital. Prices in prime central London decreased 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 home market, UK Chancellor Rishi Sunak announced a stamp duty holiday for UK buyers until March 31, 2021.
Asia and the Pacific
In June, residential activity increased in several cities around Asia Pacific, with China and Hong Kong leading the way. Due to the continuous issues of Covid lockdowns, sales volumes in Melbourne and Jakarta have decreased. In five of the 19 cities we follow, asking prices are now rising, and sales are growing in eight of them.
Despite the slowing economy and the impact of US-China tensions, prices in Singapore have only fallen by 1% since Q4 2019, according to a recent Knight Frank analysis - Where do Asian investors go from here?
Low borrowing rates, currency volatility, and some discounts are projected to boost cross-border activity across the area in the second half of 2020. Singapore, Australia, and the United Kingdom are anticipated to be three of the most popular destinations for investors seeking stability, diversification, and developed markets.
Among the flurry of legislation enacted in response to Covid-19, several minor adjustments to Australia's foreign investment restrictions emerged. The biggest difference for international buyers is the increased timeframe for the application process, which has been expanded from 30 days to six months. Our local staff has put up a helpful guide with everything you need to know.
CoreLogic's newest pricing figures reveal 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 only the UK reconsidering stamp duty; a draft assessment of Australia's tax and federal-state funding arrangements contains a recommendation to replace stamp duty with a land tax, among other potential changes.
Canada and the United States of America
According to the US Mortgage Banks Association, the average 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, earlier spikes in house price rise in 2008 and 2011 were not accompanied by an acceleration in house price increase. Given that a new home is on average 12 percent more expensive than an existing home, one possible explanation for the increase in mortgage size is the relative strength of new home sales compared to existing home sales.
The announcement this week that foreign students at US universities and schools will no longer be eligible to stay in the country if their courses move completely online due to the coronavirus could 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 business, are awaiting confirmation of their university or school's teaching plans for the new term.
In Canada, Greater Vancouver saw 2,497 properties change hands in June, up from 1,506 in May, marking the sixth highest monthly sales total since May 2018. Despite the pandemic, sales 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, demonstrating some resilience in a market that has been sluggish in previous years due to tax changes.