Knight Frank Daily Update Wednesday 27th May
Bottoming out, the Novavax trial and price discovery in the UK residential market
2 minutes to read
Good morning,
Need to know
Markets in the UK and US climbed yesterday as global economies reopened and American vaccine developer Novavax said that it had started human trials for its coronavirus vaccine. Shares in Asia slipped overnight as the reemergence of US/China tensions tempered some of that optimism.
NHS patients are to receive doses of Remdesivir, an antiviral originally designed to fight ebola. Health Secretary Matt Hancock said the development was “probably the biggest step forward in the treatment of coronavirus since the crisis began.”
Bank of England chief economist Andy Haldane said yesterday that the latest economic data looked “a shade better” than expected, with signs that the worst has passed. Though there has been a modest recovery in business and consumer sentiment, weak confidence would continue to undermine consumer spending and, in turn, demand in the economy, he said.
Germany is set to allow its citizens to travel throughout Europe after June 15.
The property market
This morning we publish our outlook for transactions, prices, rents, residential development and the finance and mortgage markets.
We are in the early stages of ‘price discovery’ in the UK residential property market. The average ratio between asking prices and achieved prices remains 95%, with offers frequently coming in at more than 10% below the asking price.
Needs-driven buyers and sellers will provide the early comparable evidence but as more discretionary buyers re-enter the market, momentum can shift quickly.
Yesterday we released data revealing a surge in demand during the week restrictions on viewings were lifted. Zoopla this morning said demand among buyers in England had already risen higher than its pre-lockdown levels after restrictions on viewings were lifted, though it expects the rebound to moderate in the coming weeks as buyers and sellers exert greater caution.
Flora Harley's analysis of real-time global economic indicators reveals global cities are becoming more mobile as economies reopen.
All 16 of the locations we monitor reported an increase in movement over the past week and month, the first time this has been the case since we started tracking data on traffic congestion and population mobility eight weeks ago.
If you have any questions, please contact me, or the team.